China Knowledge Online– International hedge funds have poured as much as US$50 billion into the Mainland’s stock markets, becoming a force that regulators cannot afford to ignore, according to a top Mainland think-tank.
The estimate is the result of the Mainland’s first study on hedge funds and comes amid reports that Beijing plans to boost the qualified foreign institutional investor quota to US$30 billion from US$10 billion.
According to the South China Morning Post, Zhang Yuewen, the Chinese Academy of Social Sciences researcher who conducted the study said, “US$20 billion to US$50 billion is a conservative estimate. Our regulators should pay more attention to hedge funds,”
That estimate is equivalent to more than a third of the about RMB 1 trillion in assets managed by mutual funds on the Mainland.
