HEDGE FUNDS with THORNS
I was recently asked to contribute to an article for efinancialCareers, on the topic of the growing Hedge Fund market in China.
As the Chinese government seeks to strengthen the country’s position in the Financial Services market it is looking to attract a higher calibre, and a greater number, of organizations. This is essential if the People’s Republic is to achieve its aim of creating a true international financial services centre in Shanghai by 2020 (as announced by the State Council). This ambition, which has always been a big challenge (more so recently given the market woes, the IPO moratorium, and a deadline which is inching closer) is now has being fuelled by other recent developments, including a new Shanghai FREE TRADE Zone.
By engaging in dialogue and through some (albeit limited) relaxing of the rules and regulations for Hedge fund entry it seems there is a window of opportunity opening up here. The size of the window, however, is currently pretty limited. Those Hedge Funds who are too ‘prickly’ may struggle to get through that window, given the restrictions imposed upon them. But for those Global funds that are prepared to trim their expectations (and - in doing so - smooth their own entry) they should be confident of having first-mover advantage… and access to a potentially huge market.
Click HERE for the full article on the eFinancialCareers website.