Behind Enemy Lines: Foreign Hedge Funds Thrive In China

(Reuters) – Hundreds of foreign hedge funds and traders are working in a regulatory grey area in China, using speculative trading strategies that are complicating regulators’ efforts to calm the country’s turbulent stock markets. Interviews with more than a dozen foreign hedge funds, proprietary traders and consultants reveal foreigners are active on a large scale in Chinese stocks, despite tight investment rules designed to limit their activities.

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