China Hedge Funds Assets
China Funds Add Assets Despite Mediocre Performance
HedgeFund.Net said China funds added $3.5 billion in assets in 2010 to a total $18.68 billion, even as their 6.11% gains were short of the global industry average of 10.55%.
"The country's equity markets have reacted negatively as the Chinese government's concerns about inflation become clear, evidenced by recent increases in interest rates, reduced growth forecasts in its 5-year plan and an increase in reserve requirements in January," it said.
The 23% asset growth at China funds was much faster than the 14% for the industry as a whole.
Still, China funds' asset level hasn't rebounded to the previous peak of $22.84 billion in the third quarter of 2007, after a dramatic plunge to a post-crisis low of below $10 billion. Global hedge fund assets totaled $2.47 trillion at the end of 2010, HFN said.
So far this year, China funds' performance also paled compared with global and Asia-Pacific peers. They recorded a 1.88% decline in the first two months of the year, while global funds gained 1.33%, Japanese funds rose 4.13%, and Australian funds rose 2.15%. Source