News Formal

Exclusive-China scrutinizes quant strategies as market weakness stokes public anger

  • 📰 YahooFinanceCA
  • ⏱ Reading Time:
  • 32 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 16%
  • Publisher: 63%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

As China's stock market struggles to recover, regulators have started to probe some hedge funds and brokerages on quantitative trading strategies amid a growing outcry against a sector able to profit from share price falls and volatility, sources said. The China Securities Regulatory Commission (CSRC) has checked with several major brokers over the past weeks about short-selling activities and trading strategies of their quant clients - funds that trade rapidly using derivatives and data-driven computer models, two people with direct knowledge of the probe said. Separately, the Shanghai and Shenzhen stock exchanges, under the CSRC's guidance, have sought information from major quant funds on their money-making strategies, another source said.

"They want to know the logic of the trading , the source of the profit; under which situation you hold net long, or net short positions ... and the reason behind buy and sell orders," the source said.

Global quant fund houses including Winton and Two Sigma have operations in China, but it's not clear if the foreign players are being probed. The weakness has triggered finger-pointing in social media, as well as criticism from fund managers and retail investors against these quant funds and short sellers.

"Brokerages in China are more willing to lend securities to quants for shortselling due to their active trading and commission contributions. But it's unfair to other market players who hardly have access to securities lending," said Yuan Yuwei, fund manager at Water Wisdom Asset Management.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 47. in MY

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Exclusive-German investment in China eases in H1 after record highGerman direct investment in China eased in the first half of the year albeit remaining close to its record high in 2022 and increasing as a share of the country's overall investment abroad, according to official data analysed by the IW institute. Investment in China dropped to 10.31 billion euros ($11.02 billion) in the first half of 2023 from 12 billion euros in the first half of last year, the IW said in an analysis shared exclusively with Reuters. The data underscores concerns that German firms continue to invest heavily in China despite the government's pleas for companies to reduce their exposure and its sharp cut in investment guarantees for the country.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Exclusive-German investment in China eases in H1 after record highBy Sarah Marsh BERLIN (Reuters) - German direct investment in China eased in the first half of the year albeit remaining close to its record high in ...
Source: SaltWire Network - 🏆 45. / 63 Read more »