Source:
https://scmp.com/business/companies/article/1865459/chinas-homegrown-hedge-funds-fret-over-industry-shake
Business/ Companies

China’s homegrown hedge funds fret over industry shake-up

An elderly woman eyes stock prices in Hong Kong as homegrown hedge funds in China face a shake-out in the industry. Photo: Felix Wong

Once star performers in China’s summer of stock woes, homegrown hedge funds are poised to undergo an industry-wide shakeup, with small players out and heavyweights left to survive as their key source of revenue was cut off after Beijing’s market rescue measures.

“We thought a bear market would help us stand out, and actually we did, but things were turned upside down by the new regulations on stock index futures trading,” said a Shenzhen-based money manager of a medium-sized hedge fund engaged in algorithmic trading.