China Goes To War With Quants, Bans Some Selling In Bid To Arrest Stock Rout
I don't want to overstate the case, but running a high frequency trading operation in Xi Jinping's China seems like a bad idea.
To be a quant fund is to accept that at some point, you're likely to be a scapegoat for adverse market developments. Maybe you can make a plausible case that very much contrary to the insinuations of critics, markets are more efficient and more liquid as a direct result of your participation. But nobody's going to buy it in the immediate aftermath of, say, a flash cras
One has to wonder if the government or any of its principals have invested in the market and what they would do to stop those investments from deteriorating further.
That is, sell before they lose any more ?
I wonder if Chinese market watchers will start tracking the “shadow close” 30 minutes before the official close. The no-sell period is when the China PPT will goose up prices.
I can let you in, but I can’t let you out…..