|Tencent Finance: Hedge funds flocked to Hong Kong||
The Hong Kong Government has been devoted to making Hong Kong the center of asset management in Asia for the past few years. Through preferential tax, legal and other policies, the Government intends to appeal more investors to expand their businesses in Hong Kong. There is a substantial increase of the quantity of the hedge funds in Hong Kong. The statistical data shows that the number of the hedge funds managed by Hong Kong has increased from 676 to 778 from year 2012 to September 2014, increased by 38.8%. Up to the end of September 2014, Hong Kong's hedge fund AUM reached 120.9 billion dollars, among which the European and American investors are accounted to 61.5%. Such AUM only was 9.1 billion dollars back in 2004.
“Lots of institutions and individual investors choose Hong Kong to set up their funds, mainly because they have intentions to use Hong Kong as a transfer station, and expand their business globally, especially towards Mainland China. After all, Hong Kong and Mainland China share similar languages and cultural.” Said by Wei Li, the Executive Vice President of OP Investment Management Ltd.
Li admitted that Mainland China has been limiting the capital outflows this year, which brings obstacles for those funds to come to Hong Kong. Such restrictions may force the hedge fund managers to raise funds from the investors in Hong Kong or overseas instead of Mainland China. Li believes that such phenomenon may not last long. In the long run, China is in the trends of overseas M&A and global asset management. These trends are bound to bring more investment opportunities, which appeal increasing hedge funds flocked to Hong Kong.