Martin Currie Investment Management, the Edinburgh-based asset management firm, is set to launch a hedge fund investing in China, further boosting the firm's Asian presence following the launch of its Asia absolute return fund earlier this year.

The new fund will incorporate the $50m (€49.9m) Jayhawk China fund, run by US-based Jayhawk Capital Management, and will start trading in December with assets of some $75m. Martin Currie is seeking to capitalise on Jayhawk Capital's established reputation in the Chinese market.