(Yicai Global) July 15 -- The Shanghai unit of UBS Asset Management, the global hedge fund giant with over 20 years of experience in China's mainland, aims to become the first foreign-funded company to set up a private equity fund of funds on the mainland.

The Asset Management Association of China is currently reviewing the UBS FOF application, the Shanghai Securities News reported today. Xia Kun, a fund manager with 15 years of experience in capital markets, will manage the portfolio that invests in other funds. 

The UBS FOF will use a combination of core and tactical investment strategies to deal with the volatile mainland stock market, Xia told the SSN. 

The launch of the FOF anticipates future demand in China's asset management market and shows the company's research, execution and distribution capabilities in China, said Raymond Yin, the firm's head of Asia Pacific and China, told the same source.

The Zurich-headquartered firm received a private fund management license in China in July 2017, after which it kicked off its first China-focused private equity fund. 

Editor: Emmi Laine