China throws up challenges for alternative premia funds

Poor data, curbs on trading and regulatory change put a new spin on the investment approach

Firms venturing into alternative risk premia investing in Chinese assets are coming up against uniquely tough hurdles, rooted in the country’s young capital markets and state intervention. But they believe the potential prize is equally outsized returns.

“Operating in an emerging market can be challenging at times,” says Qilong Zhang, head of quantitative strategies at China International Capital Corporation Hong Kong Asset Management (CICC HK AM). “But we don’t necessarily see a downside in