Tue, Jun 27, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Chinese fund managers developing local hedge fund industry

Friday, April 15, 2011

Liu Zhen
Opalesque Industry Update – The Chinese economy has grown by leaps and bounds so that it is now the second-largest economy in the world, effectively dislodging Japan. And with an estimated 500,000 millionaires, it is also home to the second highest number of wealthy individuals in Asia. No wonder asset managers in Beijing are seeing a growing demand for hedge fund products and expect the local hedge fund industry to grow significantly.

Home-grown hedge funds led by E Fund Management and Guotai Junan Asset, have reported strong demands, reported Reuters. Others that have anticipated the growth in the Chinese hedge fund industry are also joining the bandwagon. They are Guotai Asset Management, which partly owned by Italian insurer Assicurazioni Generali SpA , China Southern Fund Management and Rose Finch Investment.

Liu Zhen, head of the index and quantitative investment arm of E Fund Management told Reuters, "I feel that China's fund industry is at a turning point. Fund houses can no longer rely on the next bull market to grow. Quantitative and alternative investment will become an important driver of growth.”

Liu estimates that the Chinese industry could as much as $61bn over the next 3-5 years.

Data released by hedge fund data tracker Eurekahedge showed that some $43bn Greater China-focused hedge funds are managed outside the mainland. These funds mostly bet on Chinese shares listed in Hong Kong.

A separate report by hedge fund data tracker HedgeFund.net revealed that despite laggard performance, the Chinese hedge fund industry attracted positive net inflows last year with $3.5bn fresh inflows or a rise of 25% compared to the 2009 figures. This brings Chinese hedge funds assets to a total of $18.68bn, despite mediocre 6.11% gains as against the global industry average of 10.55%. (See Opalesque Exclusive: here).
- Precy Dumlao
PD

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. FinTech - AI hedge fund Numerai now live on Ethereum, Cryptocurrency hedge funds generate huge returns as bitcoin surges[more]

    AI hedge fund Numerai now live on Ethereum From Cryptoninjas.net: Back in February, Numerai announced numeraire (NMR), a cryptographic token to incentivize a new kind of hedge fund built by a network of data scientists. Earlier today, the Numeraire smart contract was officially deployed

  2. Investing - Advisors slash hedge fund positions, Theravance Biopharma is a top pick of investment guru Seth Klarman, As asset management industry grows a search for new revenue streams[more]

    Advisors slash hedge fund positions From Barrons.com: Financial advisors have cut wealthy clients' exposure to hedge funds by up to one third over the past 12 months, The Financial Times reports. Advisor firms in the FT's annual top-300 ranking have reduced their hedge fund allocation to

  3. Investing - U.S. hedge fund in anonymous bet against Tesco shares, Hedge funds made repeated attempts to invest in Veneto banks, Steve Cohen's Point72 takes stake in struggling electronics retailer Conn's, Hedge fund Excalibur bets Riksbank will tighten by end of year[more]

    U.S. hedge fund in anonymous bet against Tesco shares From FT.com: A $20bn New York hedge fund is using an offshore shell company to anonymously bet against the shares of the UK supermarket Tesco, raising fresh questions over the efficacy of European short selling disclosure rules.

  4. Barclay Hedge Fund index gains 0.50% in May, 4.13% YTD[more]

    Hedge funds gained 0.50% in May according to the Barclay Hedge Fund Index compiled by BarclayHedge. The Index is up 4.13% in 2017. The Barclay Hedge Fund Index has now been profitable for seven months in a row, with a cumulative gain of 6.10%. The Barclay Technology Index has gained 12.27% in the fi

  5. ...And Finally - Nighttime barbecue festival in downtown Memphis![more]

    From Newsoftheweird.com: On May 19, Carl Webb and his wife left a nighttime barbecue festival in downtown Memphis and headed home. They drove 14 miles on an interstate highway before a police officer pulled them over to ask if Webb knew there was a body on his trunk. The man was clinging to the lip