(Yicai Global) Feb. 6 -- Citadel Asia, a unit of the world's most profitable hedge fund, submitted an application to China's securities regulator to become a qualified foreign investor.

The China Securities Regulatory Commission accepted for review Citadel Asia's QFI application on Feb. 3, according to the watchdog's website.

The QFI scheme allows foreign investors to invest in China's capital market, with participants able to invest in the country's stock markets as well as in private equity funds and derivatives.

Founded in 1990, Citadel had profited investors to the tune of USD65.9 billion as of last year, surpassing Bridgewater Associates to become the hedge fund manager with the highest total returns globally, according to data from LCH Investments. Bridgewater, set up in 1975, had made about USD58 billion for investors, ceding the top spot for the first time since 2015.

Citadel handed investors a USD16 billion profit last year with huge management fees deducted, setting the record for the largest dollar gain by a hedge fund. The record was previously held by hedge fund manager John Paulson, who in 2007 earned a net USD15.6 billion via his bet against subprime mortgages, which is known as 'the greatest trade ever.'

Editor: Martin Kadiev