Hedge funds, CME looking in wary China for growth
Posted by Editor on June 12, 2008 at 08:01 AM
Thomson Reuters reports that, “The world’s largest hedge funds and the Chicago Mercantile Exchange (CME) need to convince a ‘cautious’ China of the benefits of their products, the groups said on a trip to the country, even as U.S. regulators look to rein them in. … ‘There is a cautious desire to understand what we do,’ said [Richard Baker, the former U.S. congressman and now chief of Managed Funds Association, a hedge fund industry lobbying group], referring to a conversation he had with Chinese officials including Gao Xiqing, the general manager of China Investment Corp (CIC), a sovereign wealth fund set up last year to manage $200 billion in reserves.”
The head of ADIA, arguably the world’s biggest SWF, recently mentioned in an interview that he will be shifting assets from hedge funds to index funds following what he sees as underperformance by the former.