Tuesday, 21 October 2014
Last updated 53 min ago
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.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...