Capital Fund Management, the French quantitative hedge fund manager, has opened an office in Shanghai's Citigroup Tower, according to president Philippe Jordan. The office, which began operating earlier this month with two employees, will initially handle data and engineering work supporting the firm's trading activity in Chinese markets. CFM is considering launching domestic funds for Chinese investors and feeder vehicles providing access to its offshore products. Jordan noted China represents "a huge opportunity in terms of diversification" that continues growing rapidly. The expansion comes as CFM's assets under management have risen to approximately $27 billion from $19 billion in October. Several major Western hedge funds, including Marshall Wace, DE Shaw and Two Sigma, already operate in China.