Key Trends in Asian Hedge Funds

Asian hedge funds got off to a bad start in Q1 2020. AuM tumbled by $13.5bn as the onset of the pandemic forced government authorities to impose restrictive lockdowns, triggering an equity market sell-off that saw the CSI 300 and Hang Seng indices declines by 10.0% and 16.3%, respectively, in Q1 2020. But supported by accommodating fiscal policies and the rapid rollout of vaccines, the industry went on to record six consecutive quarters of AuM growth totaling $47bn, marking a new record-high AuM of $486bn as of the end of Q3 2021. But the positive momentum did not last beyond Q3 2021.

Monthly asset flows in Latin American hedge funds

The emergence of the Omicron variant in November 2021, China’s property crisis and the outbreak of war between Russia and Ukraine led to heightened risk aversion among market participants. Additionally, China’s adherence to a zero-Covid policy has compelled the Chinese government to reimpose lockdowns in major cities, severely affecting economic activity in the country. As of the end of August 2022, the Asian hedge fund industry has recorded an AuM decline of $14bn YTD and currently stands at $470bn

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