According to Reuters, sources familiar with the plan have confirmed the move.
They claimed Mr Sze's Azentus Capital has been given commitments in excess of $1 billion for the multi-strategy fund.
The news agency noted the launch comes at a time when an increasing number of high-profile traders gear up to unveil hedge fund plans of their own.
Head of alternative investment services at BNY Mellon in Asia Pacific Andrew Gordon said: "It's a long time since Asia has seen a launch of that size ... I think it's the sign of the ongoing progress of the industry, which is good news."
Earlier in the week Bloomberg News reported that hundreds of banks in the US were extended secret lifelines by the US Federal Reserve, perhaps keeping them alive when they ought to have died.
By Claire Archer