January 16, 2006

Hedge Funds in China

China is expected to witness much more of a favorable business environment, which includes more openness, liquidity and interest from the investing public. This is going to be boon for the development of hedge funds over the next three years, according to a US expert. As of today, investing in hedge funds is forbidden due to concerns of its high risk and volatile nature. At the China Banking Regulatory Commission's annual meeting held in December 2005, Chairman Liu Mingkang reiterated the government's perception of hedge funds being one of the major forces behind the 1997-1998 Asian Financial Crisis.  Xinhuanet reports:

"Having discussed with the Chinese authorities, I believe that the consensus already seems to be developing that it is only a matter of time before hedge fund investing becomes a reality in China," said Jeffrey H Tucker, founding partner of the Fairfield Greenwich Group (FGG), a leading developer and investor in hedge funds.

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January 16, 2006 in Emerging Markets | Permalink




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