Chongyang President Wang Qing. Bloomberg screen grab

“As far as market impact is concerned, the most violent phase of this campaign-style deleveraging is over,” Chongyang President Wang Qing said in an interview with Bloomberg.

The Chinese hedge fund manages around US$2.9 billion in assets, mostly long-only domestic Chinese A-shares. One of its funds saw an annualized return of 18% through June, versus 6.5% for the Shanghai Composite Index.

Wang is now “more positive” on the outlook for bonds and “especially the stock market.”

“All those policy measures will address the risk of financial crisis, and therefore help improve market sentiment,” he said. “This really helps cut down the risk of tail events, because many investors are really worried about a potential financial crisis in China.”