New York (HedgeCo.net) – The tumultuous month in the Chinese market has led at least one hedge fund to suspend redemptions as well as new investments. Singapore based APS Asset Management took action in its APS Greater China Long/Short Fund on Monday.

According to Reuters, the fund had approximately $85 million under management at the end of June and was up approximately 70% on a YTD basis at the end of May. The fund did lose 13% in the month of June, however.
The move made by APS to halt new investments as well as redemptions could be partially attributable to all of the stocks with suspensions in trading. Chinese regulators have taken numerous actions in an attempt to slow the sell-off including lowering interest rates, suspending IPOs, relaxing margin lending and enlisting brokerage firms to back stocks.

One issue with Chinese stocks and one possible reason for APS not calculating the net asset value of the fund are the number of stocks under a trading halt. According to Reuters, there were as many as 1,300 companies that had announced trading halts.

Rick Pendergraft
Research Analyst
HedgeCoVest