An improvement in global investor sentiment towards China and Hong Kong has prompted Avantua Group, the family office created by a member of Hong Kong's third-richest family, to launch its first hedge fund, according to a report by the South China Morning Post.

The report cites managing director Xu Has as revealing that the firm is targeting $50 million for the new long-short fund with 80 per cent coming from outside investors and the remaining 20 per cent from Avantua.

The firm, which was founded in 2019 by Adrian Cheng Chi-kong of New World Development and currently manages $2 billion in assets, is aiming to complete the fundraising by September.