Thu, Nov 12, 2026
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

China further clamping down on local 'sunshine' hedge funds

Tuesday, December 27, 2016

Komfie Manalo, Opalesque Asia:

China's so-called 'sunshine' private-trust funds' the nation's equivalent of hedge funds, boomed to reach more than 30,000 in numbers at its peak in 2015 before dropping to nearly 7,000 after regulators initiated a crackdown against 'bad apples.'

Qi Wang of MegaTrust Investments Group, a research-driven and boutique fund manager, told participants in the latest Opalesque 2016 China Roundtable that Chinese regulators are trying to clamp down further and reduce the number of sunshine fund managers to a controllable range. Regulators are also introducing new, foreign competition to the market, he added.

'Our firm actually belongs to those 30,000 so-called private fund managers, also known as sunshine funds,' Qi said. 'So in early 2014, we were in the first batch of sunshine fund managers to get registered with AMAC (Asset Management Association of China). Of course a lot has happened since then, the stock market bubble burst, numerous small managers and peer-to peer financiers went down, people got arrested and despite the crackdown there are probably still some 'bad apples' out there.'

He explained that such scenario is not surprising just like any industry at its early stage, it is always possible to have good and bad apples mixed together.

China has recently introduced a new rule allowing wholly-owned foreign managers to get licensed by AMAC......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: DACH institutions push alternatives to 32.3% of portfolios as hedge funds make a comeback[more]

    Matthias Knab, Opalesque for New Managers: Institutional investors in Germany, Austria and Switzerland now hold almost a third of their portfolios in alternative investments, and they are more confident than ever in

  2. KRX chief courts CalPERS for bigger bet on Korea[more]

    Korea Exchange Chairman and CEO Jeong Eun-bo held talks with California Public Employees' Retirement System, or CalPERS, to promote greater investment in South Korea's capital markets, the bourse operator announced Wednesday. Jeong met with CalPERS Chief Investment Officer Stephen Gilmore.

  3. 755 Unicorns, $8 Trillion: Fifth Era maps the autonomous digital economy[more]

    Matthias Knab, Opalesque for New Managers: Fifth Era Partners, a specialized asset manager focused on the convergence of Internet, AI/Agentic and Blockchain technologies, has released the findings of its 13th Bia

  4. Opalesque Exclusive: "Enough beta plays" - how Fasanara builds an alpha-only multi-strategy platform[more]

    Matthias Knab, Opalesque for New Managers: Most multi-strategy funds promise diversification. Fewer can explain why their return streams should stay independent when markets turn. In an Opalesque SkillsLab investor

  5. Opalesque Exclusive: Governance, Scale, and Boutique Resilience in a Consolidating Hedge Fund Industry[more]

    Matthias Knab, Opalesque for New Managers: The hedge fund industry has undergone significant consolidation in recent years, with capital increasingly concentrated among large multi-strategy platforms. Yet boutique m