With a weakening yuan and fragile economy driving demand for foreign assets in China — the latest sign of low confidence among domestic investors — global fund launches in the country have hit a record high, according to a report by Reuters.
The report cites data from Z-Ben Advisors in revealing that eleven funds issued under the Qualified Domestic Limited Partner programme have already been launched so far this year, more than seen in the whole of 2023.
Managers such as Blackstone, Bridgewater Associates and Oaktree Capital Management have all opened funds, attracting cash from high net worth and institutional investors seeking exposure to overseas assets as Chinese markets flounder, although they have not disclosed total fundraising.
The products, which raise money from high net worth and institutional investors and invest in overseas assets, are booming as Chinese markets flounder. The yuan is at six-month lows on the dollar, the stock market shows signs of fatigue after a rebound from 5-year lows struck in February and benchmark 10-year government bond yields have hit record lows.
