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Hedging the Dragon: The Opportunity for Hedge Funds in China

Hedging the Dragon offers one of the most comprehensive looks into the Chinese Hedge Fund industry and details the potential opportunity for foreign hedge funds to enter the market providing insight on the market opportunity itself as well as some of the market entry options and key considerations for foreign funds as they consider the market.

Published: Jun 2013

Report Description

Since the great opening in the late 1970s, China’s financial markets have been on a path of continued reform. Through commitments made as part of joining the World Trade Organisation (WTO), China’s financial services industry has gradually opened up to both foreign competition and new products and services, gradually increasing in both openness and maturity, yet still with very Chinese characteristics such as a capital controlled currency, etc..

With the world’s second largest economy, China is an attractive market for nearly every corporate, financial institution and fund, but because of stringent regulation, capital controls, and lack of desirable instruments / products, mainland China has previously been a ‘maybe tomorrow’ opportunity for many hedge funds.

Yet, if 2001-2010 could be considered China’s ‘banking reform’ years, 2010-2020 is shaping up to be the ‘capital market reform’ years. Margin trading, financial futures and cross-border investing are just a few of the areas that have seen tremendous change in the past five years and will see much more as the market continues to develop and new products and opportunities emerge.

Take the actual reform along with the prolific announcements from the government and regulators on future reform, and it appears that 2013 is turning out to be the year of the hedge fund as existing private funds re-trench as more traditional hedge funds and new funds seek to enter.

Hedging the Dragon offers one of the most comprehensive looks into the Chinese Hedge Fund industry and details the potential opportunity for foreign hedge funds to enter the market providing insight on the market opportunity itself as well as some of the market entry options and key considerations for foreign funds as they consider the market.

Key questions the report will answer:

What are the key investment opportunities for hedge funds in China today?
What are the implications of the new fund law for hedge funds?
Which opportunities are hedge funds currently in the market missing?
How will regulation affect the market in the next 5 years?
If you are looking to enter the market, what are the key steps and challenges and how do you overcome them?

Clients of Kapronasia's Asia Financial Advisory Service can download this report. For more information on this report or any other of our reports, please email us This email address is being protected from spambots. You need JavaScript enabled to view it..

Hedging the Dragon: The Opportunity for Hedge Funds in China Report Details

  • Number of Pages: 20 (excluding cover/back pages)
  • Number of Tables & Charts: 5

Table of Contents

  • Foreward
  • Summary
  • Opportunities
  • Economic background of China
  • Asset management in China today
  • China hedge fund market development
  • Potential entry modes for hedge funds
  • Challenges for hedge funds from the market perspective
  • Capital markets in China
  • Exchanges
  • Regulations
  • Market entry considerations
  • Conclusion