Quant Hedge Funds Brace for End of Unbridled Growth in China
- Watchdogs take closer look at industry managing $219 billion
- New fund offerings have plunged over the past two months
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The era of breakneck growth for China’s quantitative hedge funds may be ending as regulatory scrutiny intensifies and some of the $219 billion industry’s most popular trades become increasingly crowded.
After a boom that saw assets under management at algorithm-driven funds in the country jump by fivefold over the past two years, a growing number of firms are now restricting inflows or dialing back expansion plans.