The mutual recognition scheme that will allow Hong Kong to become a gateway to the whole of China has stirred interest among international hedge funds. Eyeing the country’s untapped $6.6 trillion retail savings market, several major hedge fund managers say they are preparing to take advantage of a the scheme when it’s launched.

Max Gottschalk, co-founder and head of Asia-Pacific at Gottex Fund Management, a multi-asset Swiss-based fund of hedge funds, said: "If and when it does get agreed, I think mutual recognition could be transformational for foreign managers to raise capital in China. We are very pleased with the developments taking place."