Large Medium Small |
E Fund Management Co, China's second-largest asset management company, plans to set up the country's first institutional hedge fund, the Securities Times reported Tuesday.
E Fund will be able to raise money from individuals in a separate managed account and use the same investment strategies as hedge funds, the report said. Bank of China, which has experience in hedge funds operation, would be the trustee for the account.
Details of the fund have been submitted to the China Securities Regulatory Commission for registration, Bloomberg said, citing the company's statement.
|
China introduced index futures and short selling in April, enabling investors to bet on falling as well as rising prices.
It would be quite attractive while the stock market in flux, analysts said. China Southern Fund is also working on setting up a similar hedge fund, Bloomberg reported, citing Liu Zhen, a managing director in the index and quantitative investment department of E Fund who helps oversees the product.