Lingjun Investment (Lingjun; ) is a

hedge fund A hedge fund is a Pooling (resource management), pooled investment fund that holds Market liquidity, liquid assets and that makes use of complex trader (finance), trading and risk management techniques to aim to improve investment performance and ...

management firm founded in 2014 that is headquartered in Beijing. It is one of the largest quantitative funds in China.

Background

Lingjun was founded in June 2014 by Cai Meijie who had previously worked at

China International Capital Corporation China International Capital Corporation Limited (CICC; 中国国际金融股份有限公司) is a Chinese partially state-owned multinational investment management and financial services company. Founded in 1995, CICC provides investment banking, ...

and Penghua Fund Management. Its Chief investment officer, Ma Zhiyu, had previously worked at

Millennium Management, LLC Millennium Management is an investment management firm with a multistrategy hedge fund offering. It is one of the world's largest alternative asset management firms with over $70.2 billion assets under management as of October 2024. The firm oper ...

. According to the

Asset Management Association of China In financial accounting, an asset is any resource owned or controlled by a business or an economic entity. It is anything (tangible or intangible) that can be used to produce positive economic value. Assets represent value of ownership that can b ...

website, the main owner of Lingjun is Cai Jianliang. However, Cai does not hold a position within the firm nor is his profile mentioned. Ma is also another owner via ownership of the investment companies that own Lingjun's equity. On 20 February 2024, the

Shanghai Shanghai, Shanghainese: , Standard Chinese pronunciation: is a direct-administered municipality and the most populous urban area in China. The city is located on the Chinese shoreline on the southern estuary of the Yangtze River, with the ...

and

Shenzhen Shenzhen is a prefecture-level city in the province of Guangdong, China. A Special economic zones of China, special economic zone, it is located on the east bank of the Pearl River (China), Pearl River estuary on the central coast of Guangdong ...

stock exchanges announced that Linjun was banned from buying and selling

shares In financial markets, a share (sometimes referred to as stock or equity) is a unit of equity ownership in the capital stock of a corporation. It can refer to units of mutual funds, limited partnerships, and real estate investment trusts. Sha ...

for three days. This came as a result of Lingjun selling 2.57 billion yuan ($360 million) worth shares within a minute between 9:30 a.m. and 9:31 a.m on the day before. The benchmark indices such as the

SSE Composite Index The SSE Composite Index also known as SSE Index is a stock market index of all stocks ( A shares and B shares) that are traded at the Shanghai Stock Exchange. There are also SSE 180, SSE 50 and SSE Mega-Cap Indexes for top 180, 50 and 20 comp ...

and

SZSE Component Index The SZSE Component Index is an index of 500 stocks that are traded at the Shenzhen Stock Exchange (SZSE). It is the main stock market index of SZSE. Constituents The full list of all constituent stocks can be found aSZSE Related indices * ...

rapidly declined as a result of the trades. A statement from the Shenzhen stock exchange stated Lingjun's selling orders amounted to "abnormal trading behavior" and the firm was already warned multiple times for the same reason. One day after the announcement, Lingjun issued an apology on its website for the negative impact. It also sated it held long-term

bullish Market sentiment, also known as investor attention, is the general prevailing attitude of investors as to anticipated price development in a market. This attitude is the accumulation of a variety of fundamental and technical factors, including ...

views on Chinese stocks and will review the problems from the transactions. While Lingjun's suspension was not considered a significant problem, it was a further blow to confidence in Chinese quant funds as regulatory scrutiny increased. Prior to the ban, Lingjun's year-to-date returns from the start of 2024 were poor and had underperformed the

CSI 300 Index The CSI 300 () is a capitalization-weighted stock market index designed to replicate the performance of the top 300 stocks traded on the Shanghai Stock Exchange and the Shenzhen Stock Exchange. It has two sub-indexes: the CSI 100 Index and the C ...

References

External links

* {{authority control Chinese companies established in 2014 Companies based in Beijing Financial services companies established in 2014 Hedge fund firms in China Investment management companies of China

Background

See also

References

External links