China hedge fund launched

Chinese fund manager Munsun Asset Management has launched its first hedge fund, the Munsun China Opportunity Fund.

The fund will invest in a portfolio consisting mainly of companies established or operating in the Greater China region. This includes Chinese companies listed on the Hong Kong, New York, London and Singapore exchanges.

The offering of the fund's shares was completed on February 11, 2010.

The fund is domiciled in the Cayman Islands and is open to Chinese and international investors.

Information on the launch was provided by the law firm Kaye Scholer which advised on the deal.

Timothy Spangler, a partner at the firm, said a gradual improvement in the legal infrastructure in China had sustained a trend towards hedge funds establishing operations in the country.

"The development of a domestic hedge fund industry within China is a clear signal of the continued growth and increasing maturity of the Chinese financial system," he said.

"International investors will continue to expect market-standard terms and safeguards in their fund documentation, but at the same time, all parties must recognise the unique aspects of the Chinese economy and legal/regulatory landscape," Spangler added.