Applicability Of Hedge Fund Investment Approach In China’s Securities Market

From the beginning of the21st century, in the context of economic and financialglobalization, hedge funds within the global scope have been developing rapidly tothe boom situation. Currently, the global funds’ size(as of Assets Under Management)has been more than one trillion US dollars. But as a unregulated financial institutions,the rapid development of hedge funds are arising from the media, academic andfinancial regulators’ widespread attention. The hedge funds have the extensive andprofound impact for the economic development and the financial operation indifferent countries. With the free convertibility of the yuan and the continuousimprovement of financial markets, China’s financial market has seen a short tradingmechanisms and leverage, hedge funds have become possible development in China,the paper will combine hedge fund investment strategies and examples to analyzehedge Fund Investment strategy in China applicability.This paper is divided into six chapters, the first chapter introduces the mainresearch background and significance and meaning; second chapter describes thetheoretical basis of the hedge fund investment; Chapter III describes the systemdefinition, development process and the investment characteristics of hedge funds anddevelopment of international hedge funds; fourth chapter analyzes the investmentapproach and operation of the case of hedge funds; fifth chapter analyzes theapplicability of hedge fund investment approach in our empirical; Chapter VIconclusion and proposed hedge fund investment approach the proposed developmentin our country.