UK investment firm Man Group has just become the first foreigner to set up a quantitative hedge fund in China

Man Group, the City-headquartered investment firm, has just launched its first hedge fund in China.

The fund will follow a quantitative investment strategy, meaning it will choose where to place money by relying on algorithms or systematic programming. Man’s foray to the east will be the first time that a foreign firm has ever set up a “quant” fund in China.

Man, which has $103.5bn in funds under management, did not disclose the size of the fund. But it did say it would focus on “market trends across diverse liquid onshore markets” – more specifically listed futures including agricultural commodities, industrial commodities, bonds, metals, energy and stock indices.

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“We are truly excited about the rapid pace of the development of China’s financial markets and the investment opportunities they represent,” said Man Group Asia’s chair Tim Wong.

“I am delighted that we are bringing our first onshore quantitative strategy to the market, which taps into the strength of our research and investment capabilities.”

The group said its Chinese fund would be run by a wholly foreign-owned subsidiary in Shanghai, which was approved by the Asset Management Association of China in September.

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A number of asset managers have been betting on China’s prospects for 2018. Fidelity International became the first global player to win approval to launch investment products in China through a wholly owned subsidiary in January, while firms including State Street and Hermes Investment Management have told City A.M. that the economy will be one to watch over the next year.

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