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Foreign hedge funds thrive in China despite strict rules

Their speculative activities complicate govt efforts to calm turbulent markets

NO WRONGDOING: Hedge funds have found legal ways to bet on Chinese derivatives and stocks without going through formal investment channels.


HUNDREDS of foreign hedge funds and traders are working in a regulatory grey area in China, using speculative trading strategies that are complicating regula-tors' efforts to calm the country's turbulent stock markets.

Interviews with more than a dozen foreign hedge funds