SHANGHAI, Sept 7 (Reuters) – Chinese hedge fund managers parried criticism of their trading techniques and market impact on Tuesday, a day after the country’s top securities regulator said the rapidly growing number of “quants” was a challenge to stock exchanges.
Yi Huiman, chairman of the China Securities Regulatory Commission (CSRC), said on Monday bourses should be paying attention to a surge in quantitative trading on the mainland. Quants, as traders and funds that engage in such trading are known, employ fast computers that use mathematical and statistical analyses to trade.
In mature markets, such quantitative and high-frequency trading had led to better liquidity, but also spawned herd behaviours, greater volatility and unfairness, Yi said.
Fund managers were quick to deflect…