Hedgefunds, China vs US vs HK

How does the outlook of hedgefunds look like for Chinese run hedgefunds? Asking because of China's increasingly tightening of the flow of free money in China, as well as capitalistic moves, which I feel are what hedgefunds have to have since they make trades here and there based on "mistakes" of capitalism.

Also, are Chinese run hedgefunds/propshops located in China or HK? Asking because, once again, CCP's tight control of money makes me think even Chinese run hedgefunds would prefer being actually located in HK where it's more capitalistic and allows more freedom in terms of financial maneuvers, in terms of trades made, taxes, etc. 

Finally, how would working be different in US vs China/HK based hedgefunds?

Comments (3)

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  • Analyst 1 in HF - Macro
Sep 21, 2021 - 5:00am

I currently work at a single manager fund in Shanghai. Our main office is located in NY, but all of our investors are HNWIs and family offices in China/HK/Singapore/etc. We primarily invest in the US and China (through HK-listed companies). It seems like there's a strong push to invest money outside of China right now and the family office business is really booming, so capital is pouring in right now. Money has been moving out of China and HK towards Singapore especially after the national security law crackdowns.

Pay will likely be lower than equivalent positions in the US - probably about a 50% discount, but the business is booming. I get the sense that Chinese investors strongly prefer systematic/quant-oriented firms and are skeptical of having a qualitative edge (ironic). 

Uncertain about exit ops, probably will have more difficulty transferring back over to the US/UK afterwards, but could make it work if you're early in your career and play up China-expertise. 

Oct 21, 2021 - 2:46pm
RexEdward, what's your opinion? Comment below:

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