RMB hedge fund is a fund that uses RMB market for hedge investment. Although hedge funds are called funds, they actually do not include the characteristics of security, profitability, reciprocity and appreciation in funds, which are essentially different from funds. RMB hedge fund is a form of investment fund and a product with market exemption.

What is a hedge fund?

Hedge fund is a kind of fund with hedging as trading means. It mainly uses financial derivatives such as futures and options and other financial instruments to jointly hedge the risks of related stocks and sell them short, so as to avoid and resolve investment risks to a certain extent. However, after long-term market changes, most common hedge funds in the market have lost the basic core of risk hedging operations to avoid risks. Instead, in order to pursue high returns, financial instruments and financial derivatives used for risk hedging are used to create leverage and form an investment form that bears high risks and obtains high returns.