By Nishant Kumar

HONG KONG, Dec 4 (Reuters) - Two former portfolio managers of ICBC Credit Suisse Asset Management (International) have started their own hedge fund to invest in China in a sign that Beijing's bold new reform agenda is drawing investors.

Genesis Capital Investment, founded by Kang Hao, the former head of investment for ICBC Credit Suisse Hong Kong and portfolio manager Jimmy Weng, will start trading by end of this month and aims to raise about $100 million next year.

The launch comes after last month's government plenum, in which China unveiled its boldest economic and social reforms in nearly three decades to put the world's second-biggest economy on a more stable footing. ID:nL4N0J0350

Weng told Reuters that while investors need to wait for the reforms to take place, sentiment has improved and may boost fund flows into China, which would in turn boost the stock market.

"Earnings growth is still strong, GDP growth is still over 7 percent and you have a rerating potential," Weng said. "I will be net-long biased heading into the new year."

The hedge fund will trade Chinese shares listed in Hong Kong and the United States.

Hedge funds investing in Greater China returned 17 percent through November this year, according to data from Eurekahedge, outpacing a 4 percent gain in the MSCI China index .MSCICN . Asia hedge funds returned 14.4 percent during the period.

The outperformance by China hedge funds has drawn investors, with their collective assets rising to $12.9 billion in October, the highest level on record and 16 percent higher than the pre-crisis peak, according to Eurekahedge.

ICBC Credit Suisse Asset Management is a joint venture between Industrial and Commercial Bank of China Ltd 601398.SS

1398.HK , the world's largest bank by assets, and Credit Suisse

CSGN.VX .

Hao and Weng have initial capital of $20 million from friends and family, institutions and senior management of their previous firm, Weng said, adding they were in talks with ICBC Credit Suisse to be a potential investor in their fund.

Hao, who joined the ICBC-Credit Suisse venture in 2007, and Harvard-educated Weng, managed more than $500 million under funds including a mandate from China's National Social Security Fund just before setting up their own firm earlier this year.

The ICBCCS Global China Opportunity Equity Fund that Hao managed returned nearly 140 percent in five years to end of November 2013, data from fund tracker Lipper showed.

(Editing by Denny Thomas and Matt Driskill)

((nishant.kumar@thomsonreuters.com)(+852 28474064)(Reuters Messaging: nishant.kumar.reuters.com@reuters.net))

Keywords: ICBC CREDITSUISSE/HEDGEFUND