Greenwoods spoke in Asiahedge’s 2008 Asia forum as a panelist
On October 15th, 2008, Mr. Joseph Zeng of Greenwoods Asset Management spoke in “China: Toughing out the volatility”, a panel of Aiahedge’s 2008 Asia forum in Hong Kong, together with three other China focused hedge funds.
Key discussion points in panel include:
1. As compared to past couple years, China markets seem to be in deep decline. Investing seems to be happening more on sentiment and liquidity rather than on fundamentals. As a hedge fund manager, how to play a market such as this?
2. Government policies: The Chinese government has been coming out with several policy measures recently to boost inflows and shore up confidence in the market. Which of these measures do you think are key, what impact will they have and most importantly, are these enough (ie what else do we need to see).
3. Short selling: China may allow short selling and margin trading soon, in a sharp contrast to global regulators. How useful it would be for hedge fund managers in hedging risks and shoring up performance?
4. Politics: is politics, which frankly has always played an important part in China, more relevant today than before to investing strategy?
5. Managers have typically played China with equity long/short/private placement/pre-IPO kind of strategies. Is that about to change and will we see more macro, vol/arbitrage and currency type strategies in the market?