WSJ – A disappointing start to the year for Chinese stocks is forcing some hedge funds to prove their mettle after banner performances in 2014.
Stocks in mainland China are lagging behind major indexes in Asia and elsewhere, testing hedge-fund managers that rode surging share prices in the second half of 2014 and posted big returns. China’s unexpected easing of monetary policy and expansion of foreign-investor access to stocks spurred the rally, which has cooled after regulators cracked down on risky retail trading practices and economic growth slowed.
