The Eurekahedge Greater China Long Short Equities Hedge Fund Index was up 8.31% over the first two months of 2019, supported by the underlying region’s equity market rally which resulted from investor optimism over the US-China trade negotiations and the Fed’s dovish stance. The Greater China hedge fund industry’s asset currently stands at US$28.7 billion, marginally up from the US$28.0 billion figure by the end of 2018. Hedge fund managers focusing on the region were hit particularly hard by the aggressive Fed rate hikes and the US-China trade friction in 2018, as indicated by the US$2.3 billion of performance-based losses recorded during the year. Despite that, investor allocations toward the region remained robust, as the industry saw US$1.0 billion of net inflows in 2018.