Waning investor interest in China has been cited as the main reason for the decline in hedge fund launches in Asia last year.
According to figures published by Preqin, just 62 hedge funds were launched in Asia in 2023, the lowest since 2009.
The decline was even steeper in terms of China-focused funds. Just 15 were launched last year, compared to 34 launched in 2022.
There were also more liquidations (74) than launches and half of the shuttered funds had a China focus, reflecting investors’ current unease with China-linked investments given the country’s property market crisis and ongoing trade tensions with the US.
In contrast, the number of Japan-focused fund launches more than doubled to 19 in 2023.
There was also rising demand for pan-Asian and multi-manager funds, according to Preqin.
©2024 funds global asia 
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