Thu, Aug 17, 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. Opalesque Exclusive: Albright Capital puts a value lens on emerging markets[more]

    Bailey McCann, Opalesque New York: Over the past decade, investors have steadily increased investments in emerging markets private funds. Allocations to the cohort have increased from $93 billion in December 2006 to $564 billion in September 2016, according to data from research firm Preqin. Howe

  2. Other Voices: Crisis risk offset; about time?[more]

    This article was authored by Russell Barlow, global head of hedge fund solutions at London-based Aberdeen Asset Management. Like the ubiquitous force of gravity, when financial markets rise they must fall. The quest

  3. Comment: "Long-Term Investing": What managing drawdown risk can do to your long-term returns[more]

    Matthias Knab, Opalesque: Real Investment Advice writes on Harvest Exchange: Last week, I was having lunch with a prospective portfolio management client discussing the curre

  4. Jasper Capital International joins Hedge Fund Standards Board[more]

    Komfie Manalo, Opalesque Asia: Diversified and systematic investment firm Jasper Capital International has become the second China-based signatory to the Hedge Fund Standards Board (HFSB), an organization that brings hedge fund managers and investors together to set standards for the hedge fund i

  5. Investing - Hedge-fund honchos including David Tepper are loading up on Alibaba, Billionaire hedge fund manager Stanley Druckenmiller is betting big on the Chinese consumer, Big-name U.S. hedge funds shed healthcare stocks during the rally in second-quarter, U.S. hedge funds bearish on FAANG stocks in second-quarter, Hedge fund titan Viking Global made a $680 million bet on scandal-plagued Wells Fargo[more]

    Hedge-fund honchos including David Tepper are loading up on Alibaba From CNBC.com: David Tepper's Appaloosa Management and three other he ge funds took new stakes in Chinese e-commerce giant Alibaba in the second quarter, according to the latest quarterly filings. Appaloosa disclos