Despite reported considerations for hedge fund exits, the Alternative Investment Management Association said in a statement that it believes otherwise.
«While the anticipated new security laws undoubtedly give rise for concern, it is far too early to predict an end of its hedge fund industry,» said Jack Inglis, chief executive of the association, in an update to members, stressing that the city continued to be Asia Pacific’s largest hedge fund center.
According to the Alternative Investment Management Association (AIMA), at least six hedge fund managers have been established in Hong Kong this year. Last year, 32 new funds were established in Hong Kong with assets under management growing 85 percent over five years.
Replacement Hub
«The details of the new security laws are not yet known, and our Hong Kong members are telling us they are taking a wait-and-see approach,» Inglis added. «It would never be an easy decision to relocate.»
AIMA’s remarks were made following reported fears from hedge funds about the downfall of Hong Kong as an effective center due to a myriad of concerns related to the controversial national security law ranging from loss of free internet access to capital controls. Although Singapore has denied any observations of large flows to its market, the neighboring financial hub is a natural alternative for any Asia-based global investor.
Dual Offices
But AIMA believes that Singapore for many is not just an alternative but already a prerequisite base for investors.
«Singapore too continues to build on its reputation as a hub for hedge fund managers and more recently also as an onshore domicile for fund vehicles,» Inglis said, adding that having dual offices «greatly enhances the talent pool to draw from». «This is not an either/or situation.»
According to AIMA, it has 251 members in Hong Kong that manage more than $100 billion.
