China exchanges hold compliance training session for quant funds

CHINA’S stock exchanges have held a compliance training session for quant hedge fund companies to prevent trading risks, the Shenzhen exchange said on Monday (Mar 4).

Managers from 28 leading quant funds attended the session, the exchange said.

Organised by the Shenzhen and Shanghai stock exchanges, the training was aimed at helping quant funds understand the regulatory mindset and work requirements, the Shenzhen bourse said in a statement.

The training introduced typical cases of abnormal trading and the general idea of supervision and called on the institutions to strengthen their internal risk control management to ensure stable market operations.

Chinese quant funds, which use derivatives and data-driven computer models, face tighter regulatory scrutiny. Last month, the bourses barred a fund manager from trading for three days, saying it had broken rules on orderly trading.

The funds also suffered from a steep market sell-off this year and government curbs on short-selling as China’s blue-chip index dropped to five-year lows last month. REUTERS