FSA contacted Gao Teng AM, but the spokeswoman would not comment.
Gao Teng is the Hong Kong-based joint venture between internet giant Tencent and Beijing-based Hillhouse Capital Group. Hillhouse has $20bn in AUM and specialises in alternative assets such as hedge funds and private equity investments.
Gao Teng launched its first mutual fund after receiving approval from the SFC in October, last year. The product, the We Fund – Gao Teng Asian Income Fund, invests in Asian US dollar-denominated corporate and government bonds.
Earlier this year, the firm introduced a second product, the WeInvest Money Market Fund, to Hong Kong investors, according to SFC’s records. The launch came at a time when markets were volatile and investors were attracted to safe assets.
In May, Futu Securities cooperated with Gao Teng on an app called Money Plus, which enables users to switch cash into and out of the two Gao Teng products. Futu is backed by Tencent and Sequoia Capital.
In mainland China, Tencent’s money-market fund, Lingqiantong, opened last year. Users deposit money and can spend it any time without fees. If unspent, the deposit collects interest. Tencent likely aims to replicate this product model in Hong Kong.