Mainland broker teams with IFA for hedge fund

It takes three to tango, say the co-advisors of a new China long/short fund.

Guangfa GF Securities in Guangzhou, one of China's top-10 largest brokerages, and Hong Kong-based independent financial advisor Nobel Apex Advisors have teamed up to launch a China longshort equities hedge fund.

The joint advisory arrangement amalgamates local Chinese expertise with international investment practices, says Chan Moufung, managing director at Noble Apex and director to the new fund.

The Caymans-domiciled AAM China Fund, which is not authorized by the Hong Kong Securities and Futures Commission, is now raising capital and will commence trading in November. It will take long-term stock positions while using a dynamic hedging tactic via shorting derivative contracts and individual stocks.

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