Opening the door to China Trading

May 1, 2019 rcm-alternatives 0 comment  3 Likes
Alternative Investments, China and Asia, Investing Insight, Managed Futures, Trend Following and Systematic Strategies, Why Alternatives?

If you’re anything like us,  posts like this explaining just how different China is than things here in the U.S. never cease to amaze:

Of course, if you’re really anything like us, you’re doing more than just looking at China curiosities on Twitter – you’re heading over there multiple times per year to see for yourself.  Here’s RCM’s own Bobby Schwartz and Matt Bradbard during their just ended trip to explore more than just the cultural curiosities and infrastructure differences – but finding investment opportunities in China as well.

 

Photo: One of 50 meetings that RCM had over a 2-week period on their most recent China trip to Shanghai, Shenzhen, and Hong Kong.

 

 

Specifically, RCM is in year three of a China initiative which has seen it start a Chinese company (or WFOE as it’s known) named JinZhiShang (金芝上（上海) with a Chinese speaking staff working in country. The goal: to allow Non-Mainland China US and European managers looking to get into the Chinese space the benefit of a centralized point of contact for exploring the opportunities there – having a legal framework established and network of Chinese investors looking for trading talent to deploy on Chinese futures markets.

With RCM’s assistance, 5 different U.S.-based asset managers are now having Chinese money traded in-country per trading signals based on their logic and parameters, with all the live models positive since inception. This is made possible by the WFOE setup, as well as an order management system technology piece written into the leading market access APIs. The feedback from the more than 50 meetings taken by our team on the recent trip is that there remains a robust appetite among institutional Chinese investors for unique and successful trading signals and trading talent for utilization on Chinese markets (futures for now, but equities and other asset classes coming soon).

The newest opportunities to emerge out of some of the meetings revolve not around Chinese money trading U.S. models on Chinese markets, but a sort of reverse of that, with US/global money trading Chinese models on Chinese markets. We’re talking things like funding Chinese HFT and prop firms, or just plain old investment in a managed account program or fund run by professional Chinese traders currently in the equity markets and with law change, anticipation for futures market There is talk of the government relaxing restrictions on foreign money coming into the country for the purposes of trading/investing, and RCM is positioning itself to be able to facilitate those investments being the gateway to China for our client base and interested investors. Given some of the in-country track records we saw when over there, this is something those interested in alternative investments and unique return drivers will be quite eager to analyze. Call us at 855-726-0060 or email invest@rcmam.com to learn more.

Now, if we could just do something about those trade wars…..

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