But the growth trend remains. Preqin said the 117 cash is double that of 2014.
“With the intro of shortselling of China collateral marketplaces and favorable regulation released over modern times, Preqin expects to see the amount of cash launching within China continue steadily to increase in the coming years,” Ross Ford, mind of hedge cash and real property research at Preqin, explained within an email to CNBC.
Interest in securities trading is also high. Greater than 15,000 expenditure products launched last year, 80 percent focused on fixed income or collateral, according to Z-Ben.
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A major factor in the growth of China’s funds this season may be the strong performance in a few of the local marketplaces. The Hang Seng is certainly up 28 percent this season and China’s CSI 300 is certainly up 21 percent.
Funds are capturing those benefits. The HFRI Emerging Marketplaces: China index is certainly up 28 percent this season through October, the very best performer among the HFRI indexes and more than twice the HFRI Equity Hedge (Total) Index’s nearly 11 percent gain.
“Most Chinese hedge cash are focusing on the initial trading opportunities in mainland marketplaces,” Ken Heinz, president of HFR, said within an email to CNBC. Even so, Heinz said some cash were looking for abroad arbitrage opportunities.
The next step for most Chinese funds is expanding into foreign marketplaces, several analysts said.
The industry continues to be in the first stages of expanding overseas, “but private funds in China are on the precipice of moving into global investment with respect to their clients,” Grinderslev said.
Historically, more than two-thirds of China-based funds focused on the Greater China area. But Preqin’s Ford explained 79 percent of innovative China-based mostly fund launches in 2016 acquired a global focus.
Some cash are also trying to emulate their Western peers. Hedge fund giant Bridgewater Associates is planning to launch a release of its All Weather fund in China. A “Congrong Allweather Fund” from Shanghai Congrong Investment Administration already exists. It rose 37 percent in approximately the first 10 weeks of the year, according to Z-Ben.