Quant Models Went Haywire as Chinese Stocks Crashed and Rallied
- Trading models failed after market shifts, state intervention
- Some managers upgraded strategies, still expect to outperform
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China’s quantitative hedge funds are admitting to unprecedented failures by their stock-trading models during one of the wildest two-week stretches in the market’s history.
One manager described it as the industry’s “biggest black swan event.” Another said its models “switched from doing it right to getting it wrong repeatedly.”