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.
“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. The latest regulatory scrutiny comes after a slew of market-friendly measures - including a stamp duty cut - failed to drive a sustainable rally in a struggling market that is down roughly 5% year-to-date.
The regulatory review is not without precedent. During China’s 2015 market crash, Beijing almost shut down the index futures market and blamed shortsellers for the turmoil.Quant funds in China exceeded 1.08 trillion yuan at the end of 2021, nearly doubling in size from a year earlier, according to a report compiled by institutions including Huatai Securities.
“DMA easily raises eyebrows as it involves high leverage, and allows quant funds to make a lot of money,” said a brokerage source.
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:
South Africa South Africa Latest News, South Africa South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
EU antitrust regulators raid cardiovascular medical device companyBRUSSELS (Reuters) - EU antitrust regulators on Tuesday raided a cardiovascular medical device company in an EU country on concerns that the company ...
Source: SaltWire Network - 🏆 45. / 63 Read more »
Exclusive-China scrutinizes quant strategies as market weakness stokes public angerAs 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.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »
Exclusive-China scrutinizes quant strategies as market weakness stokes public angerSHANGHAI (Reuters) - As China's stock market struggles to recover, regulators have started to probe some hedge funds and brokerages on quantitative ...
Source: SaltWire Network - 🏆 45. / 63 Read more »
US lawmaker to urge chip industry group to reduce China investments -sourceThe chair of the U.S. House of Representatives' committee on China on Tuesday planned to meet with a semiconductor industry group to express concerns over U.S. investments in China's chip industry, according a source familiar with the matter. Representative Mike Gallagher, an influential Republican lawmaker whose select committee has pressed the Biden administration to take a tougher stance on sending U.S. technology to China, planned to meet with the Semiconductor Industry Association, which represents major chip firms such as Nvidia and Intel whose sales to China have been affected by U.S. export rules, the source said. Gallagher planned to tell the group he believes that U.S. rules enacted last October that cut off the sale of advanced artificial intelligence chips to China should be tightened to cover less advanced chips, the source said.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »