Shanghai-based quantitative hedge fund Mingshi’s founder, Yuan Yu, identified an chance when several U.S.-based PhD prospects reported difficulties completing their studies due to university funding cuts and stricter visa policies implemented under President Donald Trump.
“They told us that their supervisor’s funding had been cut,so they couldn’t continue their studies,” Yuan stated. His investment firm manages $2.5 billion in assets. “They felt lost and didn’t know what to do. This prompted us to consider extending our internship offers to full-time job offers.”
By securing these candidates, mingshi reflects a broader trend within China’s rapidly advancing quant hedge fund sector. The academic disruptions in the U.S.and the government’s stance on foreign students are enabling these funds to acquire the intellectual capital necessary to leverage China’s artificial intelligence (AI) breakthroughs and drive expansion beyond domestic markets.
Firms like Mingshi frequently compete with domestic rivals and established global corporations for top scientists and engineers,many of whom historically would have remained in the United States.
“We are hungry for top talent,” Yuan said. “In the past two to three years, we have been offering salaries that are higher than some of the top U.S. firms.”
The sector is experiencing significant growth. The yuan-denominated market is now the second largest globally, with a combined capitalization exceeding $11 trillion, fueling demand for financial products focused on wealth preservation or hedging.
Quant products managed by domestic hedge fund firms reached 837 billion yuan ($117 billion) by the end of 2024, with 768 billion yuan invested in stocks, according to Citic Securities. Mutual fund firms’ quant products, primarily index-reinforcing offerings, held 295 billion yuan, the firm reported.
Disclaimer: This article discusses financial and employment trends. It does not constitute financial, legal, or career advice. Consult with qualified professionals for personalized guidance.
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