Proposed regulations from the Asset Management Association of China (AMAC) which will impact the country’s RMB6tn hedge fund industry have prompted a pushback from several funds over concerns that they will increase operational costs and lessen competitiveness, according to a report by Bloomberg.
The report cites unnamed sources with knowledge of the matter as confirming that several international companies are seeking exemptions to, or revisions of, the rules that would require quantitative hedge funds to set up risk controls and other internal systems in China, separate from their offshore operations.
And their concerns could yet see the draft regulations amended with AMAC, which self-regulates hedge funds under the guidance of the China Regulatory Commission, saying in a statement to Bloomberg that it will “fully absorb” all responses in order to optimise the rules.
