Tue, Jan 23, 2018
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: Statsure Financial launches captive insurer for hedge funds[more]

    Bailey McCann, Opalesque New York: Hedge fund managers have a new option for protecting their business. Launching this week at the annual MFA Conference, Statsure Financial is offering a captive insurance solution for hedge fund managers. Many large companies have captive insurers - insurance

  2. Legal - Former Och Ziff hedge fund executive indicted for fraud in Africa investment scheme, prosecutor says, Hedge fund blasts defense of Puerto Rico restructuring law[more]

    Former Och Ziff hedge fund executive indicted for fraud in Africa investment scheme, prosecutor says From CNBC.com: A former hedge fund executive faces federal charges for defrauding a UK-based charity over investments in Africa, according to a grand jury indictment made public Wednesday.

  3. U.S. economy, inflation and alternative investments to dominate 2018 markets, says family office Wilmington Trust[more]

    Komfie Manalo, Opalesque Asia: The emergence of a late-cycle economy in the U.S., the mystery of inflation and growth from a domestic and global perspective, and the potential for alternative investments to prosper against a backdrop of rich valuations, low yields, and higher volatility are the t

  4. Performance - Some hedge funds deliver double-digit gains for 2017, Brevan Howard's hedge fund suffers biggest annual loss in 2017, Crispin Odey's flagship hedge fund plummeted about 20% in 2017, Profits fall 90% at ex-Morgan Stanley banker's hedge fund, Fannie-Freddie overhaul might mint hedge fund riches, losses[more]

    Some hedge funds deliver double-digit gains for 2017 From Reuters/Investing.com: A handful of hedge funds ended 2017 with double digit returns, their investors said, at a time the $3 trillion industry took in fresh money and posted its best returns in years, industry data show. Act

  5. Investing - Hedge funds start 2018 with record $19 billion bet on the euro, Hedge fund Kora Management invests in Satin Creditcare[more]

    Hedge funds start 2018 with record $19 billion bet on the euro From Reuters.com: Hedge funds have kicked off 2018 with their biggest bet ever on the euro rising, a clear vote of confidence in the single currency but, with positioning so stretched, one which could backfire in the near ter