The hedge fund giant and three other asset managers – Aberdeen, AllianzGI and BNP Paribas Investment Partners – have been approved to trade China's interbank bond market.
The Dutch asset manager will also add a third individual to its China equity research team. But it will need a new type of wholly foreign-owned entity if it is to run money onshore.
The US firm is the first foreign player with a Chinese funds JV to set up an investment management WFOE. AsianInvestor spoke to Asia-Pacific chief Michael Falcon about its plans.
Offshore asset managers’ wholly foreign-owned entities in China can now register to operate as onshore private fund firms, with Aberdeen, Bridgewater and Fidelity set to be first in line.
Paamco's David Walter does not see hedge funds clamouring to establish a China presence. Meanwhile, the Hedge Fund Standards Board is expanding into Asia, reflecting the industry's development.
Hedge funds in Asia are said to be sizing up the need for using shadow administrators as a secondary check, amid heightened regulatory and compliance demands.