China Freezes Accounts of Quant Fund After It Dumped Stocks
- Ningbo Lingjun sold $360 million of stocks within a minute
- The selling is deemed ‘abnormal’ behavior by exchanges
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China’s two main stock exchanges froze the accounts of a major quantitative hedge fund for three days after the money manager dumped 2.57 billion yuan ($360 million) in shares within a minute Monday.
Ningbo Lingjun Investment Management Partnership executed the sell orders starting from 9:30 a.m. as shares declined, “disrupting normal trading order,” the Shenzhen exchange said in a statement Tuesday. The Shanghai bourse imposed a similar freeze on Lingjun, which will be barred from trading stocks until Feb. 22.