In a significant development impacting China's financial markets, Chinese quant funds faced a major liquidity crisis, described as the industry's 'biggest black swan event.' This crisis forced the funds to sell off valuable assets due to a need for liquidity, occurring around the pre-Lunar New Year period during a 'quant quake.' The situation was exacerbated by a trading suspension of the Chinese quant fund Ningbo Lingjun by domestic stock exchanges, highlighting the challenges faced by investors using complex mathematical models and algorithms. In response to the turmoil, Chinese regulators have initiated a clampdown on quantitative trading, instructing quant funds to phase out certain strategies blamed for stock market volatility, including directives to cap leverage and suspend new product issuance. This regulatory action aims to mitigate a $4 trillion market selloff and has led to international investors becoming increasingly wary of the Chinese market. The clampdown is part of a broader campaign by Beijing to rewrite the rules of computer-driven trading in the country, which included a temporary internet cutoff for one HFT firm.