Caixin Global – Latest China News & Headlines

Home >


CX Live is Caixin Global's real-time news portal, featuring 24-hour breaking news, short-form analysis, and roundups from business and social media in China.

Chinese Companies Usher in Age of Synthetic Meat
AI Startup Plans IPO at Value of at Least $1 Billion — in China
Huawei’s First 5G Commercial Phone Gets Warm Response Despite Limited Networks
Cathay Pacific CEO Hogg Resigns Amid Hong Kong Protests
Ninebot’s New Scooter Can Drive Itself Back to Charging Stations
Oppo to Unveil New Smartphone With 20x Zoom
Chinese Companies Usher in Age of Synthetic Meat
Record-Smashing Chinese Animation to Get Overseas Releases
WTO to Arbitrate China’s Complaints About U.S. Solar-Cell Tariffs
Vipshop Stock Soars After Q2 Results Beat Expectations
Japan Replaces China as Largest Holder of U.S. Government Debt
Huawei’s First 5G Commercial Phone Gets Warm Response Despite Limited Networks
AI Startup Plans IPO at Value of at Least $1 Billion — in China
Alibaba Q2 Revenue Jumps 42%, Beating Estimates But Slower Than Year Earlier
Baidu’s $66 Billion Dive Knocks It Out of China’s Internet Top 5
Beijing Grants Foreign Investors Wider Access to Entertainment Industry
Tencent-Backed Maoyan Turns Profit on Strong Ad Growth
Chinese App-Makers Smell Opportunities in Strict Trash-Sorting Rules
Casino Giant Galaxy Entertainment’s H1 Profit Drops 7% as High-Rollers Stay Away
Chinese Internet Sector Grows 17.9% Year-on-Year: MIIT
Xiaomi Receives Licenses for Second 5G Phone
Coal Industry Looks to Robots for Increased Safety
No Investor Love for Tencent, Lenovo and Luckin in Latest Reports
China’s First AI Fund Learned From the Country’s Best Traders

By Bloomberg / Jul 25, 2019 09:37 AM / Business & Tech

Photo: IC Photo

Photo: IC Photo

China’s investors will soon be able to pick machines over humans when trying to profit in the world’s wildest major stock market.

Zheshang Fund Management Co., which manages $6.5 billion, plans to use about 300 investment models to analyze more than 3,000 Chinese stocks for what it says is the nation’s first artificial intelligence-based fund run purely on recommendations from its machines.

The “robots” initially learned from the nation’s best fund managers and analysts, and after about a year in training are ready to take them on when the fund opens to retail investors next month, according to Zha Xiaolei, head of Zheshang’s four-person AI investment team.

While a growing number of hedge funds globally including Bridgewater Associates and Man Group Plc have developed AI and machine learning strategies to gain an edge, the results so far have been mixed. Funds that incorporate AI into their decisions have lagged a broader hedge fund index since 2018, according to Eurekahedge. Making headway in a market famous for its unpredictable price swings, where mom-and-pop investors drive 80% of trades, won’t be easy.

“Globally AI strategy is at a very early stage, even though it may gain traction in the long run,” said Liu Shichen, a Shanghai-based analyst at Z-Ben Advisors, an asset-management research firm. Explaining and selling the concept of an AI fund to a retail audience in China may be a tough task, he said.

To build a model that can adapt to China, Zheshang’s machines first analyzed the strategies of more than 80 of the nation’s best-performing fund managers, drawing from public disclosures of their holdings. They were also fed stock recommendations from 500 star analysts and industry experts, and investment ideas from 200 chat groups.

Related: World's Largest AI Startup SenseTime to Open Abu Dhabi Hub

Share this article
Open WeChat and scan the QR code
Copyright © 2019 Caixin Global Limited. All Rights Reserved.