South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals 
India–U.S. Interim Trade Pact Cuts Auto Tariffs but Leaves Tesla Out 
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock 
Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility 
Gold and Silver Prices Rebound After Volatile Week Triggered by Fed Nomination 
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks 
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
Thailand Inflation Remains Negative for 10th Straight Month in January 
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
China’s Stock Market Rally Upends Hedge Funds
China's sudden stock market rally in late September caused significant disruptions for major hedge funds, forcing them to cover short positions and absorb losses. The rapid recovery, triggered by government stimulus aimed at stabilizing the economy, sent China’s stock market soaring by 25% in less than a week.
Hedge Funds Face Heavy Losses
Prominent hedge funds, including Beijing X Asset Management and Techsharpe Quant Capital, were particularly hard hit. These funds rely on market-neutral strategies, which often use stock index derivatives to hedge their equity holdings. The unexpected market reversal nullified their hedging strategies, as futures prices rose sharply and could no longer offset losses in the stock market.
Tightening Regulations and Quant Strategy Failures
Regulatory restrictions on data-driven quant funds and short selling have left China’s market prone to extreme volatility. Many hedge funds, like the British giant Winton, which manages around 6 billion yuan in China, saw their trend-following strategies fail as the market environment rapidly changed.
Strategic Adjustments Ahead
Industry experts warn that relying too heavily on a single strategy in China’s volatile market is risky. Fund managers are now shifting towards more diversified approaches. For instance, Tim Cao, a Shanghai-based hedge fund manager, is moving from quantitative to qualitative analysis to adapt to the unpredictable market.
The road to recovery for many of these funds will be long, as market conditions remain uncertain, and the impact of recent losses continues to unfold.
