Six global hedge funds have been granted permission to raise money from Chinese institutions to invest outside of the country for the first time.
Financial Times reported that Shanghai has authorized a total quota of $300 million that will be equally divided between Canyon Partners, Citadel, Man Group, Oaktree, Och-Ziff and Winton Capital. Each firm is permitted to raise up to $50 million.
The article also said that Shanghainese authorizes are currently working with the six firms to work out the details of how they will raise and administer the money.
This new hedge fund program will give Chinese institutions access to a broader range of alternative investment strategies, such as short positions and arbitrage, for the first time in the country’s history. China has ”dramatically” expanded the quotas available to foreign investors to increase cash flow into the country in the last year.