China’s Da Cheng International Asset Management will launch up to five new products in 2011, including two hedge funds for which it hopes to raise US$40 million.
The firm aims to grow its assets to about HK$10 billion in three to five years from its current total of less than HK$1 billion. It also expects to double its staff to 30, chief executive Doris Lian told Reuters.
Da Cheng International Asset Management is the offshore arm of China’s seventh-largest money manager, Dacheng Fund Management. It began operations in Hong Kong in 2009 with the launch of several exchange-traded funds. It currently offers four products, including a Greater China absolute return hedge fund launched last year.
"Launching ETFs is Da Cheng's unique strategy to venture into the overseas market, because you need two to three years to build a track record for an actively-managed fund in Hong Kong, but we don't want to wait that long," said Lian.
Da Cheng will target both retail and institutional investors in Hong Kong.
The firm also intends to add to its offerings under the Qualified Domestic Institutional Investor Scheme, which sends Chinese money overseas.
"In the international market, Chinese asset managers face challenges, including little brand recognition, a different set of game rules and limited sales networks," Lian said.
"But our long-term vision is to become a channel for cross-border investment."