Editing Statistical arbitrage (section)

==Worldwide practice==
Statistical arbitrage faces different regulatory situations in different countries or markets. In many countries where the trading security or derivatives are not fully developed, investors find it infeasible or unprofitable to implement statistical arbitrage in local markets.

===China===
In China, quantitative investment including statistical arbitrage is not the mainstream approach to investment. A set of market conditions restricts the trading behavior of funds and other financial institutions. The restriction on short selling as well as the market stabilization mechanisms (e.g. daily limit) set heavy obstacles when either individual investors or institutional investors try to implement the trading strategy implied by statistical arbitrage theory.