In February 2010, People’s Republic of China (PRC)-based investment management firm Munsun Asset Management Limited and its founder, Li Xianghong, announced the launch of the firm's first China-focused hedge fund, Munsun China Opportunity Investment Fund (Munsun fund). The investment objective of the Munsun fund is to invest in a portfolio consisting primarily of securities of companies established or operating in the Greater China Region, and of companies listed on stock exchanges in Hong Kong, New York, London and Singapore that do business in or are connected to China. Timothy Spangler, who advised on the launch, recently spoke with the Hedge Fund Law Report about the launch and structuring of the Munsun fund, and what lessons the launch offers for hedge fund managers and investors that are contemplating launching or investing in hedge funds in or focused on China. In particular, we spoke to Spangler about: the structure of the Munsun fund and advisory entity; the chief business advantages of organizing a hedge fund adviser or a hedge fund in China; the key legal or regulatory hurdles faced in structuring and marketing the Munsun fund; marketing benefits to organizing a fund or adviser in China; licenses required to manage a hedge fund organized in China; laws governing liquidity of Chinese funds; currency issues; the make-up of the Munsun fund investor base; and tax considerations. The full transcript of that interview is included in this issue of the Hedge Fund Law Report. See also “Do Collective Investment Management Schemes Offer a Means for Hedge Fund Managers to Access the Potentially Vast China Market?,” Hedge Fund Law Report, Vol. 2, No. 36 (Sep. 9, 2009).