Although the domestic hedge fund industry has just started, many institutions have begun to be eager to try, hoping to launch hedge funds first and establish a leading edge in the future. China introduced stock index futures and margin trading for the first time, which made it possible to hedge systemic risks and opened up another sky for asset management companies. More and more wealthy people in China have also cultivated a huge potential customer base for hedge funds. However, the single futures index variety, limited trading mechanism and blank past performance record have all become obstacles to the rapid development of hedge funds in recent years.

20 10 is the first year of China hedge fund, and various hedging strategies will be started in the future. Liu Zhen, general manager of the index and quantitative investment department of E Fund Company, optimistically predicted that the assets of China hedge funds may reach 300-400 billion RMB in the next 3-5 years. However, the turmoil in overseas financial markets still worries domestic regulators, who are cautious about the promotion of derivatives. Lougassi, a hedge fund analyst at Good Buy Fund Research Center, admits that due to policy restrictions, it is expected that hedge funds will not develop greatly in two or three years, and the publicity significance of hedge funds is greater than the actual significance.

Since 1949, the world's first hedge fund was born, the global hedge fund industry has reached 2 trillion US dollars in more than 60 years, and quantitative investment and hedging have become buzzwords in the fund industry. Even in the global financial crisis in 2008, it suffered heavy losses. However, in the past two years, the scale of funds in the hedge fund industry has grown rapidly, which is close to the pre-crisis level. Hedging is to use product positions in the opposite direction to offset the risk exposure of the portfolio, thus reducing the uncertainty of expected returns. Common hedging strategies include market neutrality, trend trading, event-driven and so on 10.

Due to the high incentive fees, many overseas celebrities have set up their own hedge funds, such as george soros of Quantum Fund; Simmons and Paulson of Fuxing Company, who became famous by shorting subprime mortgage in the American subprime mortgage crisis. However, hedge funds are often regarded by the government and regulators as the chief culprit of previous financial crises.