December 2006
Fund management: The sleuth of Shenzhen
Turning a profit by investing in China’s dysfunctional domestic securities markets has proved a perilous occupation for most fund managers. Recent share reforms have helped to improve an appalling investment climate but there is some way to go before China’s domestic asset management industry begins to resemble anything like those of more developed markets.
This is what makes Pure Heart Asset Management stand out among many local fund management companies. Founded in 2003 and now with just $150 million under management in four funds, Pure Heart, a hedge fund of sorts based in Shenzhen in southern China, is one of the country’s first pure privately owned asset managers.
Factory owner
Founder and chief investment officer Zhao Danyang cuts a refreshingly frank and down-to-earth figure in an industry still dominated by overseas-educated princelings and the politically connected elite. A former factory owner, Zhao says he decided to turn his hand to fund management after realizing that making consumer electronics in China’s cut-throat manufacturing sector was fast becoming a game of diminishing returns.
Studying investment theory at night after work, Zhao soon turned his back on his old career, but took some valuable lessons with him.
“Owning a factory,...
This is archived content. Your current settings does not currently allow access to the archive. To gain access visit the subscription page or call our hotline on +44 (0)207 779 8999.
If you are a trialist or subscriber, please enter your username and password at the top right-hand side of euromoney.com
Subscribers to Euromoney benefit from:
Level 1:
- Online access to the past 12 months content
- Tailored RSS news feeds direct to your desktop
- News delivered directly to your mobile device or PC
- Personalised email newsfeed of 'Top stories' and 'Breaking news'
Level 2:
- Exclusive access to euromoney.com - Read the latest issue early online, search for specific developments by region or sector, interrogate the results of Euromoney's benchmark polls, and view the archive dating back to 2000
- 12 monthly issues of Euromoney magazine
- More than 30 specialist research guides free
- The results of Euromoney’s polls and surveys
- Tailored RSS news feeds direct to your desktop
- News delivered directly to your mobile device or PC
- Personalised email newsfeed of 'Top stories' and 'Breaking news'
Click here to subscribe