Hao HONG 洪灝, CFA(@HAOHONG_CFA):Mostly because of quant hedge funds unwinding positions in CSI 1000/2000, similar to the “quant-quake” episode in early 2024. Quant funds are now the most important participants in the finder market, making up 30-40% or more of the total trading volume. In small caps, it is more than 50%. The Chinese market has evolved significantly. It’s not like plain-vanilla trading in 2015, when retail traders made up the bulk of margin trades. The profits made by the successful quant funds also gave rise to Chinese AI giant DeepSeek.

2026.07.20 23:19

Mostly because of quant hedge funds unwinding positions in CSI 1000/2000, similar to the “quant-quake” episode in early 2024. Quant funds are now the most important participants in the finder market, making up 30-40% or more of the total trading volume. In small caps, it is more than 50%. The Chinese market has evolved significantly. It’s not like plain-vanilla trading in 2015, when retail traders made up the bulk of margin trades. The profits made by the successful quant funds also gave rise to Chinese AI giant DeepSeek.