US firm to launch quant fund in China

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DE Shaw joins Winton Capital and Man Group, which have launched onshore quantitative strategies.

New York-based DE Shaw’s wholly foreign-owned enterprise (WFOE) in Shanghai has received a private fund management (PFM) licence from the Asset Management Association of China (Amac), according to a statement from the firm.

The firm received the licence this week, according to a New York-based spokeswoman for the firm.

A PFM licence allows foreign asset managers to launch onshore domestic funds to China’s qualified investors, which include institutions and high net worth individuals.

DE Shaw specialises in quant strategies and manages around $50bn, according to the statement.

The spokeswoman said that the firm will be using its quantitative models for its onshore funds. It has a Shanghai-based  investment team who will manage the funds, she said, but did not elaborate on staff size or the asset classes that the firm will initially focus on.

DE Shaw joins UK-based Winton Capital and Man Group, which obtained PFM licences and launched quant funds in China.

In total, there are around 18 foreign firms with a PFM licence. Of the 18, 14 have launched at least 30 onshore funds for qualified investors.

DE Shaw has been in Hong Kong since 2007 and opened an office in Shanghai in 2010, according to the statement. According to records from Hong Kong’s Securities and Futures Commission, the firm has licences for dealing in securities and asset management.

It doesn’t have any SFC-authorised funds for retail sale, according to SFC records.

FSA sought more information from the firm’s spokeswoman, but she declined to comment.

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