Hong Kong-based asset manager Anatole is preparing to shift a key part of its business to Singapore, after telling investors it had significantly cut its exposure to China. The firm, which made its name through outsized bets on China’s growth, is opening an office in the city-state and may move key functions and decision-making there, said three people familiar with the discussions.

Many Asia-based hedge fund managers were left nursing large losses following a years-long regulatory assault by Chinese president Xi Jinping on multiple sectors from technology to property.

Proximity to the mainland through a Hong Kong base has become less crucial for managers such as Anatole as they diversify into fast-growing south-east Asia, home to 655mn people and featuring Singapore as a regional financial hub.