According to a report from the Wall Street Journal "China
focused hedge funds managed $12.9 billion in assets as of the end of September, exceeding levels before the global financial crisis, according to Eurekahedge, which tracks the industry. In the nine months ended Sept. 30, average returns from China-focused hedge funds eclipsed those in neighboring countries, with the exception of Japan''.
“A lot of [China-focused] offshore funds are looking towards global equity markets as a way to play out China-focused investment themes,” said Michelle Lim, vice president at Deutsche Bank AG’s Hedge Fund Capital Group, which helps Asian hedge funds raise money. Some hedge funds are also exploring ways to invest within China, and foreign investors expect further opportunities as the government slowly allows a broader range of financial instruments in its push to further develop the domestic market.
