Hong Kong: a Global Center for Hedge Fund Activity

Hong Kong has increasingly become a power house in the financial world, and with good reason. Many hedge fund managers, like Seth Fischer Oasis Investments Limited, use Hong Kong as their base of activity.

A survey released by the Securities and Futures Commission (SFC) in March 2011 confirmed this growth of activity. Entitled “Report of the Survey on Hedge Fund Activities of SFC-licensed Managers/Advisers,” it shows that assets under management or advisory in Hong Kong increased 14% from March 2009 to September 2010. The number of hedge funds that are managed by SFC-licensed hedge fund managers in Hong Kong also grew tremendously. While it stood at 538 in September of 2010, it was five times the level in 2004.

By September 2010, the survey pinpointed that 66.1% of the total assets under management were invested in the Asia Pacific markets and 92% of the investors were from overseas.

As Martin Wheatley, the SFC’s Chief Executive Officer explained, “Closer scrutiny of the hedge fund industry is a global trend. We will continue to maintain a balanced approach to regulation with a view to allowing room for industry development and growth without compromising investor protection.”