China’s quant funds have an edge on foreign rivals, even as Beijing curbs trading speed

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China's quantitative funds have developed trading strategies uniquely adapted to the mainland market, which foreign rivals find difficult to replicate. This competitive advantage persists despite regulatory measures in Beijing that restrict trading speed, according to a prominent economist.

China’s quantitative funds have built trading strategies so closely tailored to the mainland market that foreign rivals cannot replicate them, even as a regulatory clampdown on trading speed reshapes the industry, according to a prominent economist. “If a top US quant team goes to Japan or India, they can beat virtually all the native quants,” Xia Chun, founder and chief economist at Chinese financial research firm Wiselink Group and former finance professor at the University of Hong Kong, told...