Tue, Sep 2, 2014
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. Study shows what resonates with investors: 'Unwavering', 'passionate' beats 'committed', 'dedicated' and more surprises[more]

    Komfie Manalo, Opalesque Asia: A new study by Pershing, a unit of BNY Mellon company, showed that an effective value proposition strengthens audience connections and fosters growth, yet many advisors have had little objective guidance in formulating such statements until now. In the study

  2. Legal – GE Capital and Petters-related hedge fund in legal battle, SEC sanctions Donald Brownstein's hedge fund over conflicts of interest[more]

    GE Capital and Petters-related hedge fund in legal battle From Startribune.com: A billion-dollar legal battle is brewing in Florida over who knew what and when about the decade-long Ponzi scheme operated by former Wayzata businessman Tom Petters. The bankruptcy trustee for two failed Flo

  3. Managed futures' global diversification is important in next phase of economic recovery[more]

    Komfie Manalo, Opalesque Asia: The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return invest

  4. Comment – Why you should avoid the hottest hedge fund hands, Swedroe attacks Hussman over risk management, relative value strategy[more]

    Why you should avoid the hottest hedge fund hands FromCNBC/Yahoo.com: Investors who don't have money with Pershing Square Capital Management are likely salivating at the hedge fund's industry-leading 26 percent return from January through July. But investing with Bill Ackman and other to

  5. Ex-UBS prop trader's hedge fund Manikay Partners eyes UK launch[more]

    From eFinancialnews.com: Manikay Partners, a $1.7 billion US multi-strategy hedge fund set up in 2008 by a proprietary trader from UBS with backing from Goldman Sachs, is planning to open in the UK. New York-based Manikay's move into Europe comes after Financial News revealed on Monday that Aurelius