Since the debut of Microsoft’s OpenAI chatbot, Chinese quant hedge fund managers have been hurrying to study ChatGPT-style products.
As China’s post-COVID recovery wanes and competition intensifies in its 20 trillion yuan ($3 trillion) private fund market, quants are turning to powerful artificial intelligence to help make decisions.
“ChatGPT is a game-changer.” Steve Chen, the partner of Shanghai-based MX Capital, said, “It can conclude a complicated network of relationships with many dimensions in ways human brains cannot.”
“We’re focusing on its ability.” ChatGPT helps his hedge fund avoid value traps, predict earnings power, and discover investment possibilities and hazards.
ChatGPT, trained with massive amounts of data, can write poems, compose music, draw paintings, and generate other humanlike replies to user inputs.
Baiont Capital chairman Feng Ji said a ChatGPT-like application helps quants process text data. Feng said ChatGPT prompted them to develop huge models utilizing trading data instead of words.
Kai-Fu Lee, former Google China executive and AI veteran backs Feng’s hedge fund, which has invested extensively in hardware to boost model-training computer power.
According to China’s largest quant fund, High-Flyer, the “greatest innovation of our times” is advanced AI. In April, High-Flyer established a research section to study disruptive AI technology.