China's crackdown on cross-border trading slammed popular brokers Futu Holdings Ltd. and Up Fintech Holding Ltd., delivering a sharp blow to investors who back them. Aspex Management HK Ltd., a multi-billion-dollar hedge fund run by Hermes Li, held nearly 5% of Futu at the end of the first quarter, leaving it exposed to sharp losses.

When Futu's American depositary shares dropped almost 28% on Friday, Aspex took a one-day hit of roughly $156 million. That kind of single-day damage shows how vulnerable hedge fund portfolios become when China moves against cross-border trading flows that these brokers depend on.

Up Fintech faces similar pressure. Both companies built growth around cross-border retail access, a model Beijing is now dismantling. The pain extends well beyond these two names — any hedge fund with concentrated exposure to China-linked fintech is now re-evaluating its risk.