China Quant Hedge Funds Under Scrutiny as Stock Turnover Jumps
- Officials consulted some top players after speech, people say
- Securities regulator said quant trading can spur volatility
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Chinese officials are stepping up scrutiny of quantitative trading after the securities regulator warned against possible problems caused by computer-driven transactions.
Regulators consulted some top quant funds this week about the potential impact of trading on the market, people with knowledge of the matter said. Similar communications have taken place previously and regulators haven’t requested any curbs on fund size or trading frequency as of now, the people added, asking not to be named because the discussions are private.