Hedge Funds Could Get Qualified Status In China

May 10 2012 | 11:44am ET

Foreign hedge funds may soon be able to trade directly on Chinese stock markets as the country's financial regulators look to inject some life into their listless capital markets.

The China Securities Regulatory Commission has begun a feasibility study of lowering the requirements to win a qualified foreign institutional investor license, as well as loosening the restrictions of QFIIs. It is unclear whether the review will result in changes or when the loosening might come, but CSRC's director of fund supervision said yesterday that changes were planned.

Wang Li told the Shanghai Securities News that CSRC planned to allow more types of foreign investors to receive QFII licenses. It also plans to streamline the application and approval process, expand the scope of a QFII's investments, clarify tax policy and ease rules on account opening and fund repatriation. Last month, the CRSC boosted QFII quotas from US$50 billion to US$80 billion.

Indeed, China has already opened the door to almost as many new QFIIs (28) in the first four months of 2012 as it did in all of last year. All told, 158 firms have been granted the licenses, but no hedge funds. Och-Ziff Capital Management applied for a license a few years ago, but it has not been approved.

Among the proposed changes are a reduction in the US$5 billion assets minimum currently required of QFIIs, a level which bars many hedge funds. Currently, firms must also have been in business for five years, blocking new China-focused hedge funds from applying.


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Hedgies, Economists and Musicians Mingle At Milkin Mixers In Hamptons

Aug 25 2014 | 6:00am ET

Leave it to Michael Milken to bring some gravitas and sweat to the Hamptons -- along...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.