Whether because of or in spite of the global marketplace’s volatility, there is no question that investors are flocking to all things Chinese. Oasis Management Hong Kong, along with a large portion of investors, are busy investing in Asia and trading on the domestic capital markets. But there has been a recent change in the direction Asian investments have been heading.
Opportunities have been shifting for both global fund managers as well as Chinese investors. During the past several decades the emphasis for foreign investors and Chinese regulators has been mostly inbound in type. A sea change is on the horizon as the number of domestic Chinese investors grows and the quick accumulation of large amounts of RMB capital is accrued simultaneously with insufficient global liquidity.
The coming together of the above factors has led to an increased interest in outbound investing opportunities.
Asian hedge funds and other equities may be struggling with national and economic limitations and with hedge fund compliance, but investors have taken interest in such firms nonetheless. For example, Oasis Management Hong Kong has the support of multi-national institutions, European banks, and leading financial firms.
New partnerships between American and Asian firms are established on a regular basis. Billionaire Julian Robertson is currently working on a new investment partnership with a focus on Asian equities. Called Tiger Pacific Capital, LP, the new enterprise will be led by Run Ye, Junji Takegami and Hoyon Hwang, according to Robertson’s firm, Tiger Management LLC.
Though Tiger Management was originally built as a hedge fund, Robertson, 80, shifted focus over ten years ago to invest his own fortune in hedge fund managers. Tiger Management has employed more than 40 portfolio managers and analysts who subsequently formed their own firms and became known as ‘Tiger cubs.’ Those built after the change are known as ‘grand cubs.’
The news on investors’ minds today, including those managing Oasis Management Hong Kong, is what will be the consequence of the Chinese plan to introduce a new way to make it more convenient for investors to short-sell locally traded equities.
Chinese regulators are determined to help bring its markets to a place more in line with standards which are in place all over the world. The hope is that the move to make short-selling easier will help stimulate the hedge fund industry in China.
In order to achieve its goals Chinese leaders in Beijing plan to start a group called the Centralized Securities Lending Exchange, which they hope will be in place by the end of March this year, which will act as a platform for short-selling activities.
According to a report, China’s market regulator, the China Securities Regulatory Commission, will be the largest shareholder in the new exchange.