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World-Beating China Quants Hit With Fee Curbs in Latest Blow

  • Watchdog tightened scrutiny on performance fees, people say
  • Restrictions add to slowing product launches, falling returns
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China’s quant hedge funds are being told to curtail fees, the latest setback for an industry that’s facing slower growth after outperforming global rivals last year.

The Asset Management Association of China has since December been rejecting registration of products that allow managers to collect performance fees when strategies lose money, people with knowledge of the matter said.