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China's Quant Quake Unveiled
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China's crackdown on quant funds and High Frequency Traders triggered a 'quant quake' affecting small- and mid-cap markets due to factor correlations destabilizing models, leading to volatility spikes and unwinding positions.
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How might the regulatory actions by China impact the global quant trading landscape?
What implications could the 'quant quake' have on investor confidence in Chinese markets?
What strategies could quant funds adopt to mitigate risks associated with factor correlations?
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