UBS sets up $100m investment unit in Shanghai

UBS Asset Management, the investment arm of Swiss investment bank UBS Group AG, has established a fully owned foreign entity in the Shanghai free trade zone to raise onshore private funds.

With an initial quota of $100 million, the entity will be officially launched by the end of this year under the Qualified Domestic Limited Partner scheme, the firm said. It is hoping to tap into the growing demand for asset investments from Chinese investors in overseas markets amid the volatile domestic stock market and the fluctuating value of the yuan.

The entity will invest mainly in hedge funds in the United States and European markets and pursue a strategy that focuses on stable investment returns, Ling Xinyuan, China chairman of UBS Asset Management, said in Beijing on Thursday.