Funds to invest in unicorn CDRs

Regulatory nod for Chinese asset management firms deepens financial opening-up

Within days of receiving regulatory approval, six Chinese asset managers have succeeded in raising an estimated around 300 billion yuan ($46.36 billion) this month for hybrid funds that will invest in certain securities of unicorns (or startups with a valuation in excess of $1 billion).

Each of the six asset managers launched a three-year hybrid fund, money for which has been raised from retail investors as well as institutional investors.