China's largest quant funds, known for outperforming the market by employing complex statistical models for stock selection, faced significant losses last month, failing to account for government influence as a critical factor. This oversight led to what has been termed as 'the quant quake,' causing billions in losses. In response, these funds are now enhancing their risk management strategies and adjusting their portfolios to align with state policies aimed at boosting retail investor confidence in the $260 billion sector. Additionally, some investors in a distressed trust fund are experiencing financial hardship due to a government plan that offers them only a fraction of their investments back, amidst a downturn in the property sector and broader economic slowdown.