On Dec 8, Pudong New Area Government Executive Meeting endorsed a policy portfolio to boost the growth of hedge funds in the area.

At the same time, the first Shanghai International Hedge Fund Summit & 2014 Hedge Summit Forum held on Dec 13 also shed some light on Pudong government's future deployment in financial industries, covering a whole range of incentives, space, and service platforms. Deputy district head Jian Danian, who was present at the summit, spoke highly of Pudong’s financial development and multi-layered financial market, and said Pudong is about to come up with a new plan to facilitate Lujiazui Financial City later this year, setting up a financial incubator for newly found financial institutions including private placement institutions in the district, and providing them with unified preferential policies and other bonuses.

Shi Haining, director of Pudong Financial Service Bureau, put that Pudong, where financial employees totaled 840,000 last year, accounting for 60% of those in Shanghai, and boasted talent and capital advantages for private placement.

In addition, Pudong will establish a platform for private placement service institutions. By the end of October this year, there were 838 licensed financial institutions and 886 specialized financial service institutions in the area, which qualified Pudong for the service.

Wang Qing, president of Shanghai Hedge Association, said the association was devoted to encourage all private placement service institutions to make a contribution to private placement. "We are resolute to form a service system to provide support over administration, capital and trade", he added.

Besides, Pudong will reward hedge funds with a managing scale over 100 billion.

According to Shi Haining, hedge funds of such a managing scale are expected to emerge in Pudong and reach a scale over one trillion in years to come.