China’s Private Quant, Bond Funds Outperform Peers as Stock Market Falters

China’s private fund sector was put through the ringer in 2023, with a shaky economic recovery and relentless stock market volatility testing portfolio managers’ resolve.

During the third straight year of rout in the Chinese stock market, private bond funds’ returns outperformed their stock-focused peers. Another bright spot was quantitative investment funds. With their algorithms and automated trading strategies, nearly 70% of private quant funds tracked by an industry data provider posted positive returns for the year.