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Chinese Regulators Probe Quant Funds and Brokers as Stock Market Struggles

  • Regulators in China have started probing hedge funds and brokerages on quantitative trading strategies as the stock market struggles.

  • The China Securities Regulatory Commission has checked with major brokers on short-selling activities and strategies of quant clients.

  • Stock exchanges in Shanghai and Shenzhen have sought information from major quant funds on their profit-making strategies.

  • The probes come after market-friendly measures failed to drive a sustainable rally in the struggling Chinese stock market.

  • Regulators want to understand the logic behind quant funds' trading strategies and short-selling activities that may contribute to market volatility.

reuters.com
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