(Yicai Global) July 5 -- Bridgewater Associates, often referred to as the world's largest hedge fund, has obtained a license from Chinese authorities to operate as a private fund manager in the country.

The Connecticut-based firm has registered as a wholly foreign-owned equity fund manager with CNY50 million (USD7.5 million) in capital, the Asset Management Association of China announced on its website.

Bridgewater is expected to raise funds and issue private products in the country within six months in line with regulations.

The company has been previously raising funds and issuing short-to-long term strategy-based products to high-net-worth individuals and institutions by using offshore banks, market insiders told Yicai Global. In terms of China's domestic market, the firm may choose to first take aim at the bond market.

Large foreign investors' focus on Chinese market is not only part of efforts to bring immediate profits but also to develop their long-term layout in China, where they aim to cultivate their own local research teams and understand the market and investors' habits. In the future, they may provide investment consulting for asset management to securities traders, Yicai Global learned from institutional sources.

Bridgewater gained approvals for several investment products as early as late 2016 on China's interbank bond market, which has been fully opened up to overseas institutions. Since there are no requirements on quotas, Bridgewater may operate yuan-denominated fixed-income funds in the country.

A total of 13 foreign institutions have been given the green light to operate as equity fund managers since the China Securities Regulatory Commission started registrations in September 2016.

Editor: William Clegg