Asia Pacific Intelligence

November news round-up: Asia Pacific hedge fund news this month included

Thursday, December 06, 2012

ASSET RISING

Global investors are avoiding Asian hedge funds according to a report from Reuters.
Opalesque reported on Gottex Penjing's survey of the Asian hedge fund market. You can read that piece here.
HFR research, reported on by Opalesque found that hedge funds are expanding through the emerging markets.

AUSTRALIA

Investors from the Asia Pacific region dominate investment into Australia, a new found.

CHINA

Coo Connect reported in depth that some experts feel the liberalisation of China's hedge fund market should be met with caution. Quoting Paul Smith, managing director for the Asia-Pacific region for the CFA Institute, the piece says: "This is obviously a very exciting time as China is opening up its foreign exchange and capital markets to inward and outward investment. However, the exact timing of when the rules will be finalised are still unclear as policy debates in China often tend to be stop-start processes. Nonetheless, managers hoping to tap Chinese institutional money should prepare for the rules."

Celent's latest study on banks in China found that Chinese banks are well capitalized, but deregulation and increased exposure to global market forces will drive risk management upgrades, such as CVA. Other findings were that asset management companies require integrated, multi-asset portfolio and risk management technologies in response to greater investor sophistication and a broad range of financial products.

News came from China that China Merchants Securities (CMS) has become the first brokerage firm to qualify to become a custodian.

In another story, Opalesque reported that China had accused the US or over-regulation and blackmail in its financial dealings.

Opalesque also reported that China has relaxed hurdles for foreign boutique managers.

FUND LAUNCHES

Reuters reported that hedge fund manager Julian Robertson, who has trained and seeded some of the hedge fund industry's biggest stars, was making an investment in Tiger Pacific Capital, a hedge fund focused on Asia.

INDICES

GFIA reported that MSCI AC Asia Pacific ex Japan returned 0.4% over October, 12.8% year to date, while the MSCI AC Asia Pacific saw -0.4% over October and 7.1% year to date. AsiaHedge Asia ex Japan in dollar terms returned 0.8% for October and 9.6% for year to date; including Japan, AsiaHedge Asia showed October at 0.6%, year to date at 5.5% and HFRI Fund Weighted Composite index came in at 0.3% in October and 4.6% year to date.

JAPAN

Bloomberg reported that Edgebell Capital Co., run by former bankers at Goldman Sachs Group Inc. and Mizuho Corporate Bank Ltd., will start raising money for its global macro hedge fund from institutional and overseas investors after approval from Japan's regulator under a new fund rule.

SINGAPORE

Eurekahedge produced a survey of the hedge fund industry and its growth in Singapore.

TAIWAN

The Economist Intelligence Unit reported that the government there would be lowering barriers to foreign investment.

This article was published in Opalesque's Asia Pacific Intelligence our monthly research update on alternative investments in the Asia-Pacific region.