Business News – The asset management arm of Shanghai-based Guotai Junan Securities Co. will launch a financial product in early March that may become China’s first hedge fund, the aim of which is to hedge systematic risks on the A-share market through short-selling the country’s stock index futures.
Guotai Junan calls it a “specialized financial product” instead of a “hedge fund.” Due to various restricting factors, including regulatory rules, Chinese securities brokers and fund managers currently have no publicly-released hedge funds despite small-scale experimental trials.
