China Halts New Cross-Border TRS for Fund Managers on June 23

According to brokerage sources cited by mainland media, Chinese regulators suspended new cross-border total return swap (TRS) business for fund managers starting the evening of June 23. Multiple hedge fund insiders confirmed receiving notifications from partner brokers regarding the regulatory freeze.

Existing TRS positions remain unaffected for now, but fund managers can no longer expand new positions. Some products face constraints where they can only sell holdings rather than reallocate to new positions, prompting major funds to reassess their overseas investment strategies.