Hedge funds often launch when markets are high, like butterflies hatching on a warm day. But despite buoyant stocks, Asia has produced the smallest number of new openings in the year to date for 17 years, according to data from Eurekahedge.

It is not for want of investors: asset inflows to established funds were stronger than at any time since 2013. A different kind of risk aversion appears to be at play: the fear that startups will not match returns from old stagers.

Chinese funds returned 22 per cent this year to date, according to an index compiled by Eurekahedge. That was five times equivalent US returns. A rally in Chinese technology stocks was an important reason for this — MSCI’s China Technology benchmark has returned 80 per cent since January. A weaker dollar also tends to boost emerging market assets.