China's financial regulators are intensifying their crackdown on the nation's stock market turmoil by targeting quantitative trading strategies, particularly Direct Market Access (DMA), which has been blamed for recent market instability. The China Securities Regulatory Commission (CSRC) is taking steps to reduce the size of these strategies and has instructed local leveraged quant funds to deleverage and phase out existing DMA products. This move comes after a significant market sell-off in 2023, with the benchmark Shanghai Composite Index (SHCOMP) falling 1.7%, the CSI 300 Index dropping over 1%, and 50% of stocks experiencing falls of over 7%. The CSRC is also banning a top-performing quant fund from the stock-index futures market for one year due to misuse of high-speed trading, highlighting the government's commitment to tighter oversight and control over business size and leverage in the securities industry.