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November 8, 2024
PI Global Investments
Hedge Funds

Quant Hedge Funds Face China Clampdown After Rare Account Freeze


(Bloomberg) — China’s two main stock exchanges vowed to tighten supervision of quantitative trading after freezing the accounts of a major fund for three days in an unusually harsh punishment.

The Shanghai and Shenzhen bourses will enhance monitoring of quant trading, especially leveraged products, according to statements late Tuesday. They will expand the scope of required reporting of such trades to offshore investors via the northbound mainland-to-Hong Kong stock connect and treat foreign and domestic funds the same.

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