DeepSeek effect? How China’s quant funds thrive amid tight regulatory scrutiny

China's quantitative investing sector is demonstrating resilience and success, with 18 funds surpassing 10 billion yuan (US$1.5 billion) in assets this year. These firms are part of a larger group of 159 Chinese hedge funds managing over 10 billion yuan each. This growth highlights the industry's capacity to achieve competitive returns even under strict regulatory oversight. The sector is benefiting from technology-driven momentum in China's stock market. New funds like AXQ Capital and Hopeseek Fund have recently joined the ranks of these large asset managers.