Insights
A new dawn for Chinese quants
China’s quant industry faced a perfect storm of challenges over the past few years due to wild market volatility and tightened regulatory restrictions, leading to significant drop in total AUM and fund closures. The emergence of DeepSeek, created by High Flyer Quant, has reignited confidence in quant strategies and redefined possibilities.
China’s rising quants
China’s onshore quant funds have topped 1 trillion RMB (US$130 billion) in total assets under management since June this year. But what’s even more striking is that these funds have increased their total assets by nearly ten-fold over the past four years. They came under the spotlight recently when a top regulator called attention to the potential risks.
Tokyo’s bid to become a global financial centre
Japan has implemented a package of incentives to lure foreign fund houses to move to Tokyo, taking a big step forward on its plan to replace Hong Kong as Asia’s premier international financial centre. Despite these initiatives and Japan’s overall economic and other strengths, there are some intrinsic shortcomings that work against its plan.
Unlocking China’s domestic wealth
China’s asset management industry has developed the depth and breadth that goes far beyond mutual funds over the past two decades. Foreign fund managers now have a number of routes to tap the vast China market.