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

Chinese quantitative funds possess a competitive advantage over foreign rivals due to trading strategies specifically designed for the mainland market, according to economist Xia Chun. He stated that while top US quant teams can outperform native competitors in markets like Japan or India, they struggle to do so in China. This unique edge persists even as Chinese regulators implement curbs on trading speed, which are reshaping the industry. Xia Chun, founder and chief economist at Wiselink Group and a former finance professor, shared these insights with the South China Morning Post. The article highlights that these tailored strategies are difficult for foreign firms to replicate.