A Study On Introduction Of Hedge Fund Into China: Feasibility And Strategies

With the implementation of Qualified Financial Investors Introduction (QFII ) , financial market in China is further internationalized. With introduction of derivative financial instruments and rapid development of fund industry, Hedge fund has attracted increased attention from many investors at home and abroad due to the potential of generating positive returns in any market environment and flexible investment strategies. Therefore, how to smoothly introduce and develop hedge fund is of great significance to hedge fund industry. In order to address such a problem, the paper makes a systematic study and proposes some procedures and supervision framework, including the following major points:1. The attributes of hedge and hedge fund and its analysis of investment strategies. Based on the study of the development process of hedge fund in US, it is further examined through the comparison between representative companies: Long Term Capital Management ( LTCM ) and Vanhedge.2. The analysis of current financial industry in China. It is approached in terms of financial products and regulations. Financial products focus on the derivative products in the late phase while financial regulations focus on the existing operational mechanism and supervisory structure.3. After a comparison study of financial market in China and...