Chinese funds eye Middle East as US investors retreat

Amid rising diplomatic tensions driving many US investors away from China, Chinese funds are turning to the Middle East and other markets for fresh capital sources. Seven Chinese equity funds, managing assets over USD500bn, have engaged with Middle Eastern entities this year, with three making their inaugural visits. The US-China strain is prompting Chinese funds to diversify and reduce dependency on US investments. Effie Vasilopoulos, co-leader of Sidley Austin's Asia-Pacific investment funds group, notes a shifting trend towards Middle Eastern capital in lieu of traditional US-based resources. Steven Luk, CEO of FountainCap Research & Investment, highlighted the positive sentiment among Middle Eastern investors towards China, with some sovereign wealth funds increasing their stakes in the nation. This change could potentially reshape Asia's hedge fund landscape.