Hedge Funds Chasing 400% Return Show Risk in China's Wild Market
- Nation has almost 9,000 hedge-fund managers, many self taught
- 300 private funds have had registrations cancelled this year
Photographer: Qilai Shen/Bloomberg
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As China’s share market was cratering at the end of 2018, Liu Yue bet almost his entire fund on just two stocks. It could have ended in tears, but he knew his firm had a once-in-a-lifetime opportunity to snare the ultimate prize for a hedge fund in China -- being crowned champion of the year.
His bet paid off and Guangdong Chaokin Investment Co. has since been swamped with investor inquiries. Many of his peers haven’t been as lucky.