Mainland enterprises to restructure Hong Kong hedge funds after the resurrection and strive to become a fresh force

In the surging tide of liquidity in Hong Kong, the excitement of the resurgence of hedge funds is fuelling the flames. Hedge funds in Hong Kong benefited greatly from the restructuring of mainland companies in the first half of the year, with the 18% per cent return on the event-led strategy, the research institute Eurekahedge.　　In this case, some hedge fund managers at their own expense, and even to the family and friends to borrow money, but also to rush into the market, ready to do a good summer vacation, and strive to become the second half to increase market volume of the force. According to Eurekahedge report, the first half of the three best performing hedge fund category, is the event-led strategy, the return of 18.21%, followed by the short and long positions of funds to make 11.76%, fixed income funds earn 10.73%. "The increase in Hong Kong equities in March-April has made the stock long and short," "instability and continued volatility in the market will allow hedge funds to outperform traditional investment vehicles such as mutual funds and long positions in the second half of the year, so it is expected to continue to flow into hedge funds in the next few months," said market participants in the Alternative Investment Management Association. According to the Eurekahedge report, 10 hedge funds have opened in Hong Kong in the two quarter of this year, one times more than Singapore, which is also active capital markets, and increased the number of hedge funds opened in Hong Kong to 14 in the first half. Jinyu, a joint director of Global Asset Management investment Research, Lin Weixiong, said hedge funds need to start anew and repackage them before launching them, with the main purpose of "washing the bottom".　　As hedge funds ' mechanisms dictate that their performance must be continuously innovative to collect fees, after the financial turmoil, hedge funds ' performance has been hard to innovate after a slump, thus affecting fund managers ' earnings. Lin Weixiong points out that the new hedge fund's initial funding is more than 20 million to 50 million U.S. dollars, and fund managers are part of an earlier "retreat" from large hedge funds, bank trading stations and traditional funds to specialize in sophisticated hedging strategies. According to statistics, in June Hong Kong hedge funds began to appear a net inflow of funds, but also means that redemption in May has ceased.　　Globally, Asia's hedge fund returns in the first half of the year came mainly from the mainland, Hong Kong and Japan markets, totaling 14.15%, above the average return of 9.41% per cent for global hedge funds. Lin Weixiong pointed out that the most important thing is the improvement of atmosphere and the revival of confidence. Overall, he says, the climate of market investment is improving, raising hedge funds ' ability to take risks and bringing more money into the hedge fund market. At the same time, as global countries begin to tighten regulation of hedge funds and derivatives markets, they can also increase investor confidence in the hedge fund market.