The Securities and Futures Commission in Hong Kong said it will not relax restrictions or licensing for hedge fund managers.
“The Hong Kong label should be a label of quality,” says Alexa Lam, an executive director at the Securities and Futures Commission.
Hong Kong was expected to follow Singapore’s lead to exempt licensing for hedge fund managers who have less than 30 investors; both are competing to be Asia’s hedge fund hub.
Hong Kong will not adopt the rule, says Lam. All hedge fund managers are required to hold a license.
Between March 2005 and 2006, the number of hedge fund managers in Hong Kong doubled to 118, with an increase of assets managed by $33.5 billion or 268 percent, says Lam.
Singapore’s number of managers grew 51 percent to 109, during 2005. And its assets under management are more than $6.1 billion, states the annual report by the city’s monetary authority.