SHANGHAI (Reuters) – Renowned international hedge fund managers Bridgewater Associates LP and Winton Group Ltd have had registrations to launch products in China accepted at a time of turbulence in capital markets, reflecting a change in the federal government’s stance towards such overseas funds.
The Shanghai subsidiaries of Bridgewater and Winton each registered on the Asset Management Association of China (AMAC) on June 29, confirmed notices posted on the affiliation’s web site on Tuesday, paving means for personal fund launches in the nation.
According to guidelines, asset managers should launch products inside six months of registration.
Their registration comes as China’s inventory and foreign money markets have been roiled by buyers spooked by threats of tit-for-tat import tariffs between the U.S. and Chinese governments.
In abroad markets, Bridgewater and Winton use quantitative methods that construct each lengthy and brief positions in numerous markets to earn money. It is just not clear what sort of products they plan to launch in China.
Allowing such hedge fund managers to launch products at a time of market turmoil highlights China’s dedication to opening up its market, and contrasts with the federal government’s stance towards overseas hedge funds throughout China’s 2015 inventory market crash.
At that point, the federal government largely blamed the crash on “malicious” short-selling by home and overseas “speculators”.
Bridgewater, the world’s largest hedge fund agency with $160 billion value of belongings underneath administration, opened its China unit in 2016. Its billionaire founder, Ray Dalio, toured China earlier this yr to promote his ebook “Principles”.
British funding supervisor Winton has lengthy been lively in China. It has been offering advisory providers in China by means of native partnerships and is licensed to assist Chinese make investments aboard.
Reporting by Samuel Shen and John RuwitchEditing by Christopher Cushing