HK's strengthens role as centre for hedge funds in Asia

The Hong Kong Securities and Futures Commission (SFC) has developed risk management tools to hedge the risk of mainland assets, with the aim of strengthening its role as a centre for hedge funds. Hong Kong is the largest hedge fund centre in the Asia-Pacific region, where alternative assets grow at the fastest pace in the world. A survey conducted by SFC last year of licensed hedge fund managers showed that from 2018 to 2020, the total assets managed by hedge funds surged by 48% to USD287bn. SFC deputy chief executive Julia Leung Fung-yee said the new hedging tools such as Stock Connect and Bond Connect will encourage long-term investments in Hong Kong as they provide global investors with an additional liquidity pool for managing their risk exposure to the mainland markets.