Affected by a combination of factors such as fluctuations in peripheral stock markets and phased take-profit pressure on technology assets, the A-share market fluctuated and weakened again on July 13 after experiencing last Friday's adjustments. After the market on the 13th, a market rumor that “the quantitative strategy for A-shares has already incorporated the trend of Korean technology stocks into the factor model and triggered a chain reaction in different technology sectors within the A-share market” spread widely in the industry. In response, the reporter conducted interviews with a number of leading quantitative private equity agencies to obtain evidence. The founder of a quantitative private equity fund with a scale of over 20 billion yuan told reporters: “From an industry perspective, leading domestic quantitative agencies rarely use Korean data to find factors. This so-called rumor is simply a layman's 'small essay'. Today's quantitative industry is also generally at a big loss. I learned after the market that most of my peers today's excess earnings are negative.” Regarding the reason for today's market decline, the private equity source mentioned above believes: “If the market rises more, it will fall; if it falls too much, it will rise; there should be no 'conspiracy theory'.” The general manager of another 10-billion-level quantitative private equity firm responded that the above rumor was unfair. “If quantitative institutions were to trade based entirely on the rise and fall of overseas technology stocks, they would inevitably have negative overruns in the long run, and most quantitative institutions would not do this. The quantitative industry as a whole still surpasses by finding and holding quality companies.” Furthermore, the founder of a well-known quantitative private equity firm characterized by quantitative neutrality also told reporters, “This statement is completely unreasonable.” The adjustments in A-shares in recent days are more a reflection of the relevance of the global market and due to the high level of overcrowding of technology assets in the early stages. The private equity source further emphasized that the current valuation of the main A-share weight index is reasonable, and there is limited room for further market adjustments in the future.

Affected by a combination of factors such as fluctuations in peripheral stock markets and phased take-profit pressure on technology assets, the A-share market fluctuated and weakened again on July 13 after experiencing last Friday's adjustments. After the market on the 13th, a market rumor that “the quantitative strategy for A-shares has already incorporated the trend of Korean technology stocks into the factor model and triggered a chain reaction in different technology sectors within the A-share market” spread widely in the industry. In response, the reporter conducted interviews with a number of leading quantitative private equity agencies to obtain evidence. The founder of a quantitative private equity fund with a scale of over 20 billion yuan told reporters: “From an industry perspective, leading domestic quantitative agencies rarely use Korean data to find factors. This so-called rumor is simply a layman's 'small essay'. Today's quantitative industry is also generally at a big loss. I learned after the market that most of my peers today's excess earnings are negative.” Regarding the reason for today's market decline, the private equity source mentioned above believes: “If the market rises more, it will fall; if it falls too much, it will rise; there should be no 'conspiracy theory'.” The general manager of another 10-billion-level quantitative private equity firm responded that the above rumor was unfair. “If quantitative institutions were to trade based entirely on the rise and fall of overseas technology stocks, they would inevitably have negative overruns in the long run, and most quantitative institutions would not do this. The quantitative industry as a whole still surpasses by finding and holding quality companies.” Furthermore, the founder of a well-known quantitative private equity firm characterized by quantitative neutrality also told reporters, “This statement is completely unreasonable.” The adjustments in A-shares in recent days are more a reflection of the relevance of the global market and due to the high level of overcrowding of technology assets in the early stages. The private equity source further emphasized that the current valuation of the main A-share weight index is reasonable, and there is limited room for further market adjustments in the future.