HONG KONG, April 20 Reuters Large Chinabased fund managers are setting up shop in Hong Kong for the first time, seeking to fill Chinese investors39; appetite for U.S. dollarbased products and international exposure after the country reopened its borders.

The foray by Chinabased funds into Hong Kong kicked off last year as China lifted years of COVID19 lockdowns, and as high net worth Chinese families were finally able to travel and diversify investments in their hunt for stronger returns.

At least eight mainlandbased funds, including billiondollar yuan quant funds, equity funds and mutual funds, have set up operations in Hong Kong in the past six months, and more than 10 others are headed there, according to a Reuters tally based on sources and public information.

Most of them are rapidly building offshore sales and research teams and preparing for the launch of their first U.S. dollar funds. As mainlandbased funds are yuan denominated, fund managers need to set up in Hong Kong to be able to offer foreign currency products.

One of those firms, Beijingbased Ren Bridge Asset Management, which manages 17 billion yuan 2.5 billion, opened an office in Hong Kong in March and is in the process of applying for an asset management license there.

The fund, which has delivered annualised returns of 21 since 2017, has launched a fund offshore with a longbias equity strategy, mostly for Ren Bridges existing clients, including corporates and family offices, with funds abroad.

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