Prime Cap doubles China fund, closes to new $-sources

HONG KONG Jan 7 (Reuters) - Hong Kong-based Prime Capital Management has closed its $1.4 billion Greater China long short equity fund to new investors, two sources familiar with the development said on Friday, after doubling its size last year.

Dragon Billion China Fund, managed by Yijun Liu, started 2010 at about $700 million and gained assets rapidly during the year when many Asia focused hedge funds struggled for assets.

"It's roughly $1.4 billion," one of the sources said referring to the current size of the fund, making it one of the biggest hedge funds in Asia.

Hedge fund managers tend to turn away eager investors for fear that running big funds would harm returns.

Prime Capital Management could not be reached for comment. (Reporting by Nishant Kumar; Editing by Jacqueline Wong)