[IMF: The rapid expansion of hedge funds may amplify market risks] On October 6, the International Monetary Fund (IMF) pointed out in Chapter 2 of the "Global Financial Stability Report" released on the 6th that we should be alert to the risks that hedge funds may bring to macro-financial stability. The report said that the scale of global hedge fund assets has grown too fast, which can easily amplify price dislocations and tight liquidity amid capital market fluctuations. Once it encounters a serious negative impact, it may trigger systemic risks. The report said global hedge fund assets grew from US$4 trillion in 2013 to US$13 trillion in early 2026. Although accounting for only about 5% of non-bank financial investment institutions, hedge fund assets have grown significantly faster than most other non-bank financial sectors since the global financial crisis. The IMF pointed out that while hedge fund assets are expanding rapidly, leveraged financing has also become an important way for them to expand their investment scale. The so-called leverage refers to making larger investments with less own funds through borrowing funds and other methods. Leverage can magnify gains, but it can also magnify losses, making financial institutions more vulnerable when markets fall.