Chinese Hedge Fund Greenwoods Adds Hong Kong Stocks Amid Rout

A $20 billion Chinese hedge fund used last week’s selloff in Hong Kong stocks to boost exposure, betting that Beijing’s policy support will drive shares higher and lure global investors as US markets lose appeal.

Gao Yunchengof Greenwoods Asset Management Ltd.,one of the largest hedge funds in China, said the firm has sold nearly all of its non-Chinese holdings this year. The firm’s confidence in China — expressed mostly via investment into Hong Kong stocks — was emboldened as US President Donald Trump unleashed a global trade war.

“The most important thing for a market is the ...