Hong Kong should replace its unit trust fund-raising structure with an open-ended fund company structure if it wants to attract Chinese hedge funds to domicile in the city, says the CFA's Paul Smith.
Tag : sunshine fund
With abundant capital domestically, onshore hedge funds are in no hurry to expand abroad, while mutual funds are planning launches of offshore long/short equity strategies.
These prototypes of hedge funds in China have seen record liquidations this year. But there is optimism that new regulations will allow them greater freedom to hedge downside risk.
