The Shanghai government plans to introduce a program that would allow approved managers of both international and domestic private-equity and hedge funds to raise yuan capital from Chinese companies and individuals to invest in foreign markets, The Wall Street Journal reported. Participating funds would be required to register in Shanghai to participate. Major domestic firms, such as Citic Securities (0080.HKG), are expected to actively raise funds for foreign asset managers, and sources familiar with the plan said some of the largest global hedge funds are preparing for the pilot program. Fang Xinghai, director-general of the Shanghai Municipal Office of Financial Services, said his office is working with central government agencies to secure the plan’s details. Questions remain regarding how profits from these investments will be taxed, said John Brynjolfsson, head of Armored Wolf hedge fund. The pilot program is still seen as an opportunity to gain access to China’s tightly regulated markets.
Categories