Sun, Dec 11, 2016
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. Institutions - Texas County & District culls 5 hedge funds, reallocates to existing managers, Kentucky board gives final approval to halve hedge fund portfolio, $38bn Finnish fund moves assets to U.S. as Europe flounders, South Korea’s National Pension Fund holds 5% stake in 62 listed companies[more]

    Texas County & District culls 5 hedge funds, reallocates to existing managers Texas County & District Retirement System, Austin, continues to reduce the number of hedge funds, but not the size of its $6.2 billion hedge fund portfolio. It will redeem a total of $760 million from five hedg

  2. Opalesque Roundtable: Australian family offices search for good risk adjusted returns, happy to pay for skill[more]

    Komfie Manalo, Opalesque Asia: Australian family offices want foremost good risk adjusted returns, and they are happy to pay for the skill, and in some cases, the limited capacity of an active manager. Jonas Daly, Head of Distribution at B

  3. StepStone announces close of Swiss Capital acquisition[more]

    StepStone Group LP announced it has successfully closed the acquisition of Swiss Capital Alternative Investments AG, one of the leading private debt and hedge fund solutions providers in Europe. The transaction was originally announced in May 2016, and has been in the process of receiving regulatory

  4. Investing - Stephen Cohen investing $275m in free clinics treating veterans' mental health issues, California Resources loses favor with hedge funds[more]

    Stephen Cohen investing $275m in free clinics treating veterans' mental health issues From Healthcarefinancenews.com: …Now, a new chain of free mental health clinics for vets has opened in five cities across the United States to fill the gap. The much-needed new treatment is underwritten

  5. Hedge funds flat in last week of November 'in sympathy with markets’[more]

    Komfie Manalo, Opalesque Asia: Hedge funds were close to flat in the last week of November in sympathy with markets, which took a pause ahead of the OPEC meeting and Italian referendum. The Lyxor Hedge Fund Index was -0.1% as of end November 29 (-1.7% YTD), according to the latest