Hedge fund industry in China

The hedge fund industry in China was established in the early 1990s, and has so far undergone four stages: infancy, formation, rapid expansion, and adjustment and standardization.

Categories
Currently hedge funds in China fall into two categories. One is those companies backed up by the government, including brokers managing pooled property, trust and investment companies' trust and investment projects, and investment companies managing their own capital. The other is private hedge funds. Under the name of "Investment Consulting Company" or "Investment Management Company", they provide management for pooled property. Examples of notable private hedge funds include Greenwoods Asset Management, Hillhouse Capital, High-Flyer, Ubiquant and Lingjun Investment.

Share of GDP
Data showed that hedge funds account for 0.6% of the GDP in the US, 0.35% in Europe, 0.2% in Asia, while only 0.1% in China. It is expected that China's GDP would quadruple in 10 years time and hedge funds would be about 0.4% of the country's GDP. In this case, China's hedge funds would expand 12-fold, and place China second in the world for hedge fund investments.

Bank deposits
Residential Bank Deposits in China 2003-2008H1

Year Residential Bank Deposits in China (billion RMB)


 * 2003 10,360
 * 2004 11,960
 * 2005 14,110
 * 2006 16,160
 * 2007 17,250
 * 2008H1 19,460