(South China Morning Post) A record number of hedge funds in China were forced to liquidate owing to woeful performance in the first half of this year, exacerbating the bearish sentiment on the weak A-share market.
According to Beijing Gesafe Wealth Advisory, more than 200 hedge funds had to halt operations between January and June after they crashed below the liquidation value. As the hedge funds suffered a setback when investors’ risk appetite appeared to be low following a stock market rout last year, it also added uncertainties to the long-term development of the country’s capital market where regulators hoped to bolster institutional buying to avert bumpy rides.
