China Intensifies Market Crackdown, Targeting Quant Funds and Short-Selling
Beijing's latest measures to stabilize stock markets include curbs on short-selling and increased scrutiny of quant trading, risking long-term damage to investor confidence.
- Beijing's crackdown on private sector activities aims to support flailing Chinese stock markets, including restrictions on short-selling and quant trading.
- The measures have led to frustration among traders and are likely to deter investor appetite, with China's stock markets having lost trillions since their peaks in 2021.
- Chinese hedge funds face abrupt trading restrictions, with regulators monitoring transactions in person, as part of efforts to halt a $4 trillion selloff in stocks.
- The crackdown on quant funds and short-selling raises concerns about China's commitment to market transparency and could drive away international investors.
- Despite temporary stabilization of the stock market, the long-term implications of Beijing's heavy-handed approach may undermine efforts to attract global capital.
Business Insider 
The Japan Times 