What's New In Investments, Funds? – HSBC, China

Editorial Staff

1 August 2022

HSBC Bank (China) has announced the official distribution of private trust plans investing in hedge fund to its private banking clients.

This service provides eligible investors with alternative investment options to achieve a more diversified asset allocation. HSBC said in a statement last Friday that it is the first international bank in mainland China to distribute such plans to qualified investors.

Coming at a time when some hedge fund strategies, such as those trying to follow broad trends in interest rates and currencies, have outperformed stocks, HSBC is tapping into the sector as a way to spread risks. It also is playing into continued investor interest in alternative areas such as hedge funds, private equity, venture capital and forms of real estate. The bank cited data from Boston Consulting Group, in which the consultancy said it expects alternatives to grow at an annual rate of 9 per cent through 2026, at which point they will represent an estimated 19 per cent of global assets under management.

“Hedge funds can be an effective tool for portfolio diversification, helping investors capture opportunities amid the current market volatility. Looking ahead, we shall select and onboard more alternative investment strategies from leading global and local partners to enrich our range of asset management products with investment targets including hedge fund, private equity, private debt and real estate funds,” Ying Wang, head of investment and wealth solutions, wealth and personal Banking, HSBC China, said.

The newly-launched private trust plan is issued by China Resources SZITIC Trust Company Limited, and the underlying fund is managed by Pinpoint Private Fund Management Limited.