APS Asset Management lifts suspension of Greater China hedge fund

(Adds quotes, background)

LONDON, July 16 (Reuters) - Singapore-based APS Asset Management said on Thursday that investors would be able to buy into its Greater China (HKSE: 0431.HK - news) focused hedge fund or redeem their holdings from July 20, following a suspension.

APS froze the fund on Monday after China imposed trading restrictions, which made it difficult to determine the exact value of the fund's holdings.

The fund will also now calculate its net asset value.

"Having carefully considered the financial position of the fund, the composition, value and liquidity of the fund's investments and general market conditions, the directors consider the lifting of the suspension to be in the fund's best interests," the money manager said in a statement.

In China, 1,300 stocks halted trading last week, making roughly $2.4 trillion worth of stock market assets inaccessible to investors.

"Over the past few days, a significant percentage of the suspended China A shares has resumed trading, which has occurred more rapidly than had been expected," said Kei Yuguchi, head of Asia Pacific hedge fund research at Lyxor Asset Management.

"Most suspended stocks are small caps and APS does not focus on such small caps," he said.

The APS fund managed about $85 million at the end of June, according to data seen by Reuters. (Reporting by Nishant Kumar; editing by Simon Jessop and David Clarke (Toronto: CKI.TO - news) )