Chinese quant hedge funds have been venturing into overseas markets for years, but their expansion has accelerated as the sector has become increasingly crowded at home and regulators tighten their supervision of a sector able to profit from market volatility.

“Under the current compliance rules in China, some quant strategies don’t work, or cannot deliver the best performance at home,” said Shen, who helps Chinese funds build global brands.

“So some quant funds are setting up their second investment centre, in Hong Kong or Singapore, where their strategies may work better, and operate more freely.”