Report: China To Welcome Foreign Hedge Funds

Feb 29 2012 | 5:36am ET

The world's most populous country—and its second-largest economy—may be the next big market for the world's hedge funds.

China plans to allow foreign hedge funds to set up yuan-denominated products in the People's Republic and to raise capital there, the South China Morning Post reports. The decision, in principle, only, so far, was relayed to the Shanghai Municipal Office of Finance Service.

There will remain major restrictions on what foreign hedge funds can do in China. All will have to be registered in Shanghai, and while they can raise money in the mainland, they will not be permitted to invest in mainland markets.

It is unclear when foreign hedge funds will be able to begin launching Chinese funds.

China already allows foreign firms to set up private equity funds in the country. Those funds have an opposite restriction to that to be imposed on the hedge funds: They must invest exclusively in mainland China.


In Depth

Q&A: Old Hill's Stone On Private Debt, P2P And Credit Bubbles

Jun 6 2017 | 7:52pm ET

While institutional capital continues to flow into the broader private debt sector...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: Asia-Focused Hedge Funds Offer Great Opportunities

Jun 23 2017 | 3:33pm ET

Emerging market strategies have outperformed their developed-market peers for five...

 

From the current issue of