Beijing's new draft rules for private funds do not mention regulating these products' investing into non-standard assets, which could let them conduct corporate lending, said observers.
Private equity fundraising in renminbi has rebounded strongly since 2015. There are good reasons for this trend, says Ian Kelly of fund administrator Augentius.
The Hong Kong arm of China Everbright Group aims to raise its offshore infrastructure fund to $1 billion through China insurers and European investors, and inject more assets into it.
The funds of funds industry in China has enormous potential, but fund houses need to build capabilities and track records in order to exploit it, said participants and observers.
The region's family offices are keen on real estate, equities and increasingly US private credit, according to a joint report by UBS and Campden Research.
Asset owners across Asia are likely to begin seeking financial technology providers to help them understand exactly how the fees they pay to alternative funds are being used.
Consultancy CompliancePlus has raised concerns about Hong Kong's proposed rules for a new open-ended fund structure in its submission to the regulator.
The Bureau of Labor Funds, Cathay Life and Fubon Life are upbeat about the move to allow domestic asset managers to launch private equity funds.
But the looming EU rules could affect them, especially if they run portfolios on behalf of European fund managers.
Renewable energy and healthcare are among the biggest recent beneficiaries of soaring flows of private capital, according to EMPEA.
Investment industry experts say new rules allowing Taiwanese mutual fund houses to run private equity funds will benefit both local and foreign managers. Green energy will be a big focus.
China's Asia-to-Europe infrastructure initiative has seen little involvement by asset owners. Better inducements may be necessary, including stronger downside risk protection.
The investment consultancy suggests secondary funds may be a better bet than funds of funds for making a first step into private equity.
The strong performance of emerging markets, especially China and India, has led to a pick-up in interest, say industry experts. But don't expect a fully fledged comeback just yet.
Mumbai-based multi-family office Waterfield Advisors is adding expertise to meet rising client demand for unlisted local assets.
As more startups enter the market to share ever-more unlikely products, it may be a sign that China’s sharing economy bubble is about to burst.
The regulator could create unnecessary work for private equity firms by adopting a new approach, says Philippa Allen, CEO of ComplianceAsia.
Apollo’s new $24.6 billion record buyout fund is likely to be followed by others, but the size of new private equity funds could lead to lower returns for limited partners.
Such products are not transparent and saddle the buyer with most of the risk, says Philip York of trading firm Alt224, who argues for a ban.
The funds will target distressed assets in India and other Asian special situations and credit assets, says a source, amid rising demand for private debt.