In Shanghai and Singapore on March 11, Chinese individual investors are shifting towards embracing artificial intelligence tools like DeepSeek, in contrast to the previous crackdown on computer-driven traders by the government. This shift is evident in the plethora of online courses catering to retail traders eager to utilize computer models to gain an edge in the market.
The widespread adoption of DeepSeek is reshaping China's predominantly retail investor-centric stock market landscape, prompting changes at brokerages and wealth management firms. The trend underscores a changing perception of China's $700 billion hedge fund industry.
During a weekend seminar in February, Hong Yangjun emphasized to a packed audience the significance of AI in trading, stating, "The future is the digital age, and AI will be vital." In a similar vein, lecturers in Shanghai highlighted the evolving stock market scenario, likening it to a battle between computers.
This growing acceptance of AI reflects a stark contrast to the previous skepticism towards computer-driven quant funds, labeled as "bloodsuckers" by retail investors. The industry faced government scrutiny a year ago, but recent events, like Mao Yuchun's lecture on stock trading with AI, indicate a shift in sentiment. Participants paid 15,800 yuan ($2,179.91) each for the event hosted by Alpha Squared Capital, underscoring the trend towards AI-driven trading methodologies.
Notably, Chinese traders are also turning to platforms like DeepSeek for stock evaluation and strategy development. This shift is not only time-efficient but also seen as a potential game-changer for small asset managers and retail investors.
While enthusiasm for AI tools like DeepSeek is on the rise, analysts caution that investors should not place blind faith in these models. Despite the benefits of AI in investing, including cost-efficiency and strong reasoning abilities, limitations exist. Some experts warn against overestimating the superiority of AI models compared to human judgment.
In conclusion, the rise of DeepSeek represents a significant shift in how retail investors perceive quant trading, signaling a shift towards AI-led decision-making in investment strategies.