DeepSeek effect? How China’s quant funds thrive amid tight regulatory scrutiny
Por Tim Yuen Lingk — South China Morning Post – News feed
Advertisement China stock market Business Banking & Finance DeepSeek effect? How China’s quant funds thrive amid tight regulatory scrutiny
Strong returns are attracting investors to quant funds, with DeepSeek highlighting the sector’s potential role in China’s tech ambitions
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Tim Yuen Lingk Published: 10:00am, 2 Oct 2026 Updated: 10:29am, 2 Oct 2026
China’s quantitative investing sector has produced 18 funds managing more than 10 billion yuan (US$1.5 billion) in assets each so far this year, underlining the industry’s ability to generate competitive returns despite a tight regulatory environment.
The firms are among 159 Chinese hedge funds overseeing more than 10 billion yuan in assets each, riding the technology-driven momentum in the world’s second-largest stock market.
Among the new entrants to the club were AXQ Capital, Hopeseek Fund and Huanian Fund, according to financial data provider Wind.
“Many quant funds are now doing exceptionally well,” said Christopher Beddor, deputy China research director at economic research firm Gavekal Dragonomics.
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