Hong Kong – Hedge funds are hungry for a bigger bite of China’s booming but restrictive stock market, undeterred by last month’s gut-wrenching one-day selloff and limitations on their access and trading strategies.
Mainland shares soared 130 percent last year, reversing a five-year losing streak and drawing global investor attention. But Beijing has only granted Qualified Foreign Institutional Investor (QFII) quotas of $10 billion, mostly to major banks, which can make that quota available to money managers.
Hedge funds, which aim to generate returns in both bull and bear markets, are putting pressure on their prime brokers to get them more access to mainland-listed A-shares, as they see both near-term trading opportunities and long-term prospects.
