Foreign Capital "Votes with Their Feet": MS Capital Wins $1 Billion Mandate, Chinese Quantitative Strategy Becomes Middle Eastern Allocation_NEW FOCUS AUTO

Singapore-based quantitative hedge fund Meridian & Saturn Capital (MS Capital) officially announced on April 15 (Wednesday) that it has received a special investment authorization of up to $1 billion, with plans to invest the full amount in trading Chinese stocks. According to sources, the majority of this substantial funding comes from a Middle Eastern sovereign wealth fund, with additional provisions in the agreement that if MS Capital meets predetermined performance targets in future operations, the sovereign fund will further expand its investment. It is understood that the Middle Eastern sovereign wealth fund has been increasing its allocation to Chinese quantitative fund managers, and this mandate will be one of the largest ones to date. With volatility rising in the region and artificial intelligence improving the performance of Chinese fund managers, this transaction may indicate an accelerated growth of funds flowing into Chinese assets. From a macro market perspective, MS Capital's significant authorization is not an isolated event, but a reflection of a major shift in global capital flows in recent times. According to recent research from international financial institutions such as BNP Paribas and Goldman Sachs, after several years of adjustments, the attractiveness of Chinese stock market valuations and the recovery potential of corporate profits are attracting international long-term capital "backflow". Especially since the beginning of 2026, overseas hedge funds that were previously on the sidelines have significantly increased the weight of Chinese assets in their investment portfolios. Kate Zhang, the founding partner and CEO of MS Capital, stated that the company is currently in discussions with other Middle Eastern funds for potential investments, and plans to open offices in Abu Dhabi, Hong Kong, and the United States to seize emerging investment opportunities. The company manages approximately $1.5 billion in assets, including an initial $500 million investment from Middle Eastern clients. Kate Zhang mentioned that this mandate from MS Capital was reached after more than a year of "high-intensity" due diligence by the client. The client aims to diversify their investments into Chinese assets and is eager to enhance the returns of their existing investment portfolio through systematic solutions. In terms of specific investment execution, regulatory records show that MS Capital is controlled by Jude Zhu, who holds an MBA degree from the University of Chicago and founded a Shanghai-based quantitative investment company called Meridian Global Inc. in 2013. Meridian Global manages around 7 billion RMB (equivalent to $1 billion) in assets domestically and is one of the largest quantitative investment firms in China. However, Jude Zhu's financial technology company Leap Technologies is a major provider of the so-called T+0 trading algorithm, which aims to capture intra-day price fluctuations in stocks. Kate Zhang stated that as part of the February agreement, the Middle Eastern fund plans to use the Leap system to enhance the returns of its global investment portfolio. Leap's artificial intelligence algorithm has delivered annualized returns of up to 10% or higher for clients' stock holdings, typically achieved through brokerage trading systems. Kate Zhang revealed that in addition to potentially investing in Chinese index enhancement strategies, Middle Eastern clients also encourage MS Capital to develop other market strategies and plan to increase leverage for separately managed accounts, which will also utilize the Leap algorithm to boost returns. "This is an unprecedented depth of cooperation for Chinese quantitative traders," Kate Zhang stated, also being a partner at Meridian Global. In terms of performance, MS Capital's market-neutral strategy yielded a return rate of 10.3% last year, a return rate of 6.2% as of February 28 when the Iran conflict broke out this year, while the Chinese benchmark Shanghai and Shenzhen 300 Index is expected to rise by 18% in 2025. Kate Zhang pointed out that the global demand for Chinese quantitative investment institutions is steadily increasing, which is evident. In recent months, numerous institutional investors, including those from the United States, have flocked to MS Capital's roadshow events. The market interest is so strong that the company made five presentations at the Morgan Stanley conference held in the Middle East in February, while other large global fund managers only made one or two. Kate Zhang emphasized that Chinese investment is "heating up again" and "confidence in Chinese quantitative investment is growing stronger".