For veteran hedge fund investor Chua Soon Hock, 2024 was supposed to herald a multi-year rise in Chinese stocks and the opportunity of a lifetime. Instead, his fund’s sudden demise sends a warning to fellow China bulls: Stick to your guns at your peril. US$330 million (S$443 million) fund would close after it was badly burned by wrong-way bets on Japan and by falling Chinese markets that he largely blamed on inaction by policymakers, including President Xi Jinping.
“I am writing to you with a heavy heart and utmost regret,” Mr Chua said in a letter to clients, saying their cash would be returned after an almost 19 per cent plunge in January. “My confidence as a trader is lost.” Mr Chua’s plight shows how even the most experienced fund managers have been ensnared by a China market meltdown exacerbated by Beijing’s limited policy support. Ms Li Bei, a long-time China hedge fund bull, admitted to mistakes after suffering the worst losses of her career, while global investment firm