SHANGHAI, Sept 13 China has granted six foreign
hedge fund management companies quotas to raise yuan in China
and invest it abroad, the 21st Century Business Herald reported,
citing an unidentified source with knowledge of the decision.
The quota opens up the world's second-largest economy for
the first time to the $2 trillion-plus global hedge fund
industry, potentially helping foreign funds raise billion of
dollars from Chinese institutional investors for investment
The report said that Chinese regulators had granted six
funds a combined $300 million worth of quota. Earlier reports
said the programme, called the Qualified Domestic Limited
Partner (QDLP) programme, would have a net quota of $5 billion.
The firms include the Man Group Plc, Winton Capital
Management, Oak Tree, Citadel, Och-Ziff Capital Management Group
LLC and Canyon Partners, the report said. Each fund has
been granted a $50 million individual quota.
A Hong Kong-based spokesperson from the Man Group declined
to comment when contacted by Reuters. The other funds could not
be immediately reached for comment.
The report comes as China has accelerated the tempo of
announcements regarding reforms to the country's capital
Financial industry insiders have told Reuters that the new
Shanghai Free Trade Zone, set to launch by the end of the month,
is likely to further open the Qualified Domestic Institutional
Investor (QDII) programme, a pilot project that lets Chinese
fund managers invest in foreign equities and bonds.
However, analysts have pointed out that the QDII fund has
proven unpopular with Chinese investors, with much of the
programme's existing quota going unused.
Analysts said that many Chinese investors were burned during
the implosion of overseas stock markets in 2008-2009, turning
them off of foreign stocks, but they have become enthusiastic
investors in overseas real estate.