UG Investment, one of the oldest hedge funds specialising in Chinese markets, is planning to open its first office outside greater China to step up investment in south-east Asia in a move that would help it guard against the risks from any conflict between China and Taiwan.
The fund, which manages assets of about $4bn, will open an office in Singapore, according to three people with knowledge of the details. It launched in 1998 and currently operates from Taipei and Shanghai.
Tensions between the US and China have increasingly centred on Taiwan, with Russia’s invasion of Ukraine in February fuelling speculation that Beijing could try to annex the democratically governed island in the next few years. China claims sovereignty over Taiwan and the Chinese military has significantly increased its activity in the region over the past two years.