China’s desire to open its financial markets has ramped up as two significant hedge funds receive onshore product approval.

The Asset Management Association of China approved registration for U.K. based Winton Group and U.S. Hedge fund giant Bridgewater Associates. The move allows the pair to launch onshore products in China. Winton Group announced the consent in a media statement.

Having obtained regulatory approval the two firms can now work on developing onshore investment products for high net worth and institutional investors in mainland China. According to the registration rules the firms will have six months to launch their first funds.

Significant Timing

Bridgewater Associates opened its Beijing office in 2011, and in 2016, the firm established operations for Bridgewater China Investment Management in Shanghai. London-based Winton Group set up its local research and investment management team in China in 2012, before opening its current Shanghai office in 2015.  

David McCormick, co-chief executive officer of Bridgewater Associates noted that his firm had an extensive history with China as a result of having been deeply involved in and studying the evolution of its economy and markets for more than three decades.

«China is at a unique inflection point, a globally impactful economy with deepening capital markets which are lowly correlated to those in other developed economies, making Chinese assets a valuable source of diversification,» said McCormick