China's murky world of high-frequency futures trading

Rapid tech developments make fast-moving sector tough to regulate

20220307 Caixin market AP_21342751053482

Industry experts estimate that total profits generated by high-frequency trading in China's futures market amounted to about 5 billion yuan ($725 million) in 2019.  © AP

YUE YUE, WANG SHIYU and JZHANG, Caixin

There is a mysterious force at play in China's futures market -- high-frequency traders.

They are mostly very low-profile inside China, operating under the guise of trade companies that buy and sell physical goods, and are said to be making huge profits. But outside China, they are associated with big-name high-frequency players.

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