Bank of America Merrill Lynch 'helping set up Asian hedge funds'

Bank of America Merrill Lynch is helping to establish more than a dozen hedge funds in Asia as industry regulation grows tougher in America and Europe.

Dan McNicholas, head of Asia financing sales at Merrill Lynch, told Bloomberg that Hong Kong and Singapore were particularly popular with those seeking to reestablish or found new hedge funds in the regions.

"When you compare [it] to New York or London, the business environment has been very friendly for managers," he said.

"[In London and New York] you are seeing tax proposed and other restrictions on business."

He added that there was now a trend of senior financial services staff moving to Asia, whereas it had previously been more junior employees transferring to the region.

Earlier this week, Fred Hu, Goldman Sachs's chairman of Greater China, expressed his concern that investors were helping to inflate potential real estate bubbles in Hong Kong and Singapore.

By Gary Cooper