Fri, Mar 29, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Nearly 1,300 China hedge funds have shut down

Wednesday, September 16, 2015

Komfie Manalo, Opalesque Asia:

Nearly 1,300 of China’s hedge funds have shut down since the Chinese stock market plunge in August.

But the worst is yet to come as Chinese authorities have introduced new restrictions on short selling and other hedging strategies, reported Bloomberg. Those government restrictions will make bear-market bets more difficult.

Howbuy Investment Management Co. told Bloomberg that a similar number of hedge funds in China are facing comparable prospects of closures.

The number of hedge fund-like vehicles, or private placement securities funds, exploded in China over the last years. In 2015 alone, the number of these hedge funds more than doubled and peaked at 1,159 as of Aug. 31, managing 1.62 trillion yuan (about $254 billion) in assets, according to data from the China Securities Regulatory Commission.

However, most of these Chinese hedge funds are long-only, and bet solely on rising markets. Even before government restrictions on practices such as short-selling, the majority of China-based managers avoided betting against individual securities because they lack the expertise for such complex strategies and also because they are expensive.

"The real hedge funds," which use risk-management tools including stock index futures, recorded mostly positive returns in the June to August p......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1