SHANGHAIHONG KONG, April 22 Reuters China39;s datadriven quant trading funds are briskly expanding overseas as competition heats up at home and regulators tighten scrutiny of the 260 billion sector.

Meridian Saturn Capital MS Capital, with offices in Shanghai and Singapore, said it is starting to offer its China strategy to offshore investors, and also preparing to invest in global markets.

DH Fund Management set up its first offshore fund in March, according to a public filing, and Beijingbased Ubiquant plans to open a U.S. office, a source familiar with the matter said on condition of anonymity. DH Fund and Ubiquant declined to comment.

Chinese quant hedge funds have been venturing into overseas markets for years, but their expansion has accelerated as the sector has become increasingly crowded at home and regulators tighten their supervision of a sector able to profit from market volatility.

Many Chinese funds want to get exposure to European and U.S. investors, and also need to build offshore structures, as they cannot just trade China forever, said Alvin Fan, CEO of hedge fund platform OP Investment Management.

Fan and some other fund executives launched the Chinese Overseas Private Funds Association last week in Hong Kong, an industry body to help Chinese fund managers expand globally and collectively voice their concerns to policymakers.

Filippo Shen, the China chief representative of Dutch asset manager Privium Fund Management HK, said a growing number of…