Quantitative investing takes a systematic, research-driven approach, applying quantitative tools to process fundamental information and manage risk. It uses statistical analysis and computer technology to process large amounts of financial data and build scientific models for investing. Based on scientific research theories, quantitative investing takes advantage of the strong information processing capability of computers, to identify and capture assets that meet the investment criteria while avoiding potential blind spots. Quantitative investing has the characteristics of being systematic, objective, timely, disciplinary, accurate, and diversified. It aims to reflect the fund manager’s investment philosophy precisely and to avoid the interference of their sentiments and preferences, thereby pursuing consistent and stable excess returns.
Quantitative investing is not the opponent of traditional investing despite many differences between them. Our models are designed to capture fundamental investment experts’ industry experiences, analytical thoughts, and trading intuitions through a systematic framework. With the help of advanced computing technologies, our models not only could process all the open data of stocks, bonds, and derivatives, but also actively collect other macro and micro data that affect asset prices. The capability to process large amounts of data quickly makes quantitative investment extremely adaptive and scalable.
Quantitative investing in China is still in its infancy and dramatically lags behind its counterparts in more developed foreign markets. It is however receiving more and more attention from institutional and retail investors alike. As China’s stock markets and institutionally managed capital expand, along with the introduction of more complex derivative instruments such as futures and options, quantitative investments that are based on scientific approach is likely to become a dominant force in the Chinese market.