Hedge Funds Alter Strategies In China as Regulatory Crackdown Bites

(Reuters) Hedge funds are ditching their ambitions of pioneering Western-style high-speed trading strategies in China’s fledgling equity derivatives market and are styling themselves as traditional asset managers to weather an intensifying regulatory crackdown.

These aspiring ‘Flash Boys’ have been hamstrung by short-selling restrictions introduced in the wake of last year’s stock market crash which has made it difficult and politically risky to execute their sophisticated trading strategies.

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