Chinese quantitative hedge fund Lingjun Investment has secured more than $300m from international investors as it resumes fundraising following a two-year suspension prompted by regulatory sanctions, according to a report by Reuters.

The Beijing-based firm's offshore arm, Lingjun Capital, has attracted commitments from a US institutional investor and several Southeast Asian clients, while discussions are underway for a further $150m allocation from a Southeast Asian sovereign wealth fund.

Lingjun is also targeting investors in the Middle East as international appetite for Chinese quantitative strategies strengthens, supported by advances in artificial intelligence and improved investment performance.

The firm, founded by Cai Meijie in 2014, previously managed approximately 100 billion yuan ($15bn), making it one of China's four largest quant managers. However, its assets fell to around 50 billion yuan ($7.5bn) following a regulatory crackdown in 2024, when the Shanghai and Shenzhen stock exchanges temporarily suspended its trading activities over rule violations.

Cai said Lingjun had suspended fundraising for two years while overhauling its risk management and governance structures. The firm doubled its risk management team, integrated additional controls into its trading systems and established a five-member investment committee.

The changes have coincided with a recovery in performance. Lingjun's flagship equity strategy returned more than 70% in 2025, according to data from fund distributor Simuwang.com, and gained more than 10% in the first nine months of 2026.

By comparison, China's CSI 300 index rose 18% in 2025 but declined 6% in the first nine months of this year.

Cai also attributed renewed international interest in Chinese quant funds to the emergence of AI developer DeepSeek, which was incubated by quantitative investment firm High-Flyer.

"People are looking at Chinese quant funds from a new angle. It's increasingly about how AI can be applied in investment," Cai said.

Lingjun restarted domestic fundraising in March before reopening its offshore strategies to international investors, marking a return to capital raising after the regulatory intervention that disrupted one of China's largest quantitative hedge fund platforms.