UBS launches yuan hedge fund amid bullish forecast for China’s A shares
The Swiss bank is the second foreign institution to be allowed to directly access mainland investors’ money
UBS has announced its plan to launch a yuan-denominated hedge fund after its wholly-owned asset management unit in China received the go-ahead to raise money from wealthy mainland investors to invest in the onshore bond and equity markets.
The Swiss bank will become the second foreign institution to tap the mainland’s hedge fund sector after Fidelity International launched its first onshore bond fund in Shanghai this year.
Aries Tung, UBS’ head of strategy and business development in China, said the fundraising would be completed within this year, and the company has yet to decide whether the first fund would focus on bond or equity investment.
It is now gauging the mainland investors’ demand before making a final decision.
“We don’t look at short-term volatility in the market,” Tung told the South China Morning Post on Thursday. “In general, we are bullish about the A shares’ outlook in 2018.”
UBS will raise the yuan funds through its subsidiary UBS Asset Management (Shanghai).