Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

$1 Billion Pulled From Hong Kong Hedge Funds, Most Since 2009

Stock Markets Oct 17, 2019 07:25AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. $1 Billion Pulled From Hong Kong Hedge Funds, Most Since 2009

(Bloomberg) -- Hong Kong’s hedge fund industry saw its biggest quarterly outflow since the global recession a decade ago, a shift that may deepen concern about investor sentiment in the protest-wracked financial hub.

Net redemptions totaled about $1 billion in the three months ended September, the most since the second quarter of 2009, according to data compiled by Eurekahedge Pte. Analysts from the research firm said that while anti-government protests in Hong Kong have unnerved markets, the outflow was in keeping with redemptions from hedge funds globally after poor returns from a number of managers in 2018.

The withdrawals from Hong Kong were modest relative to total hedge fund assets in the city, which climbed $6.9 billion this year to $92 billion as of August thanks largely to positive market returns, according to Eurekahedge. Small-and medium-sized hedge funds managing $500 million or less accounted for the bulk of client outflows, with bigger funds seeing positive allocations, the research firm said. The industry has enjoyed net annual inflows every year since 2009.

“The political crisis in Hong Kong is yet to pose any meaningful threat,” Mohammad Hassan, head hedge-fund analyst at the firm in Singapore, said by email. “The opportunity and access that managers based in Hong Kong provide to Chinese onshore markets and to the broader region as whole is unlikely to be eclipsed in the near term unless things really spiral out of control.”

The protests have already impacted other parts of the city’s financial system. A rising number of family offices have made inquiries about shifting away from Hong Kong, while a recent Goldman Sachs Group Inc (NYSE:GS). analysis suggested that some bank deposits have been transferred to Singapore.

$1 Billion Pulled From Hong Kong Hedge Funds, Most Since 2009
 

Related Articles

Former Deutsche Bank co-CEO Anshu Jain dies
Former Deutsche Bank co-CEO Anshu Jain dies By Reuters - Aug 13, 2022 10

(Reuters) -Anshu Jain, a top finance executive best known for helping German lender Deutsche Bank AG (NYSE:DB) take on the largest Wall Street firms, died overnight on Saturday...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (5)
Wayne Ng
Wayne Ng Oct 17, 2019 8:58AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Again $1 billion in and out is no big deal for HK
Wayne Ng
Wayne Ng Oct 17, 2019 8:45AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
HK is only hit by typhoon but is supported by China. If you put big money in Singapore it is a small country.
Wayne Ng
Wayne Ng Oct 17, 2019 8:20AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
George Soros has tried the luck but he hadn't succeeded.
Wayne Ng
Wayne Ng Oct 17, 2019 8:14AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
HK's own accumulated cash reserve is US$438 billion and yet the HKGovt only issued the $10 only. All the bank notes are issued HSBC, BOC and the Chartered Bank which are all backed up by US$. Therefore virtually HK is free from any financial crisis.
jingcao he
jingcao he Oct 17, 2019 7:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
.....the second quarter of 2019
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email