The net asset values of several funds run by Dan Bin’s Shenzhen Oriental Harbor Investment Management Co – one of China's best known money managers – have shown a sudden rise in volatility indicating that the firm may be rebuilding positions after liquidating almost all of its holdings earlier this year, according to a report by Bloomberg.

The net asset values of several funds run by Dan Bin’s Shenzhen Oriental Harbor Investment Management Co – one of China's best known money managers – have shown a sudden rise in volatility indicating that the firm may be rebuilding positions after liquidating almost all of its holdings earlier this year, according to a report by Bloomberg.

The Chinese stock market, the world second largest, has outperformed its global peers for three weeks running prompting investors to increase their exposure to Chinese companies. 

The report cites data provider Shenzhen PaiPaiWang Investment & Management Co for information that Dan's Marathon No 16 fund saw a 3.2% drop in NAV last week having reported fluctuations of less than one per cent for the previous three months. By comparison, the benchmark CSI 300 Index was up 3.7% last week and has jumped 13% from an April low.

The gains come as the world’s second biggest economy started showing some signs of recovery last month.