The introduction of artificial intelligence into Chinese trading markets has sparked significant changes in the country's asset management industry. The Chinese hedge fund, High-Flyer, has become a pioneer in this sector by incorporating AI into its multi-billion-dollar portfolio and creating the renowned startup DeepSeek. This development has triggered an AI arms race among Chinese asset managers, potentially transforming an industry valued at almost $10 trillion.

Breakthrough by High-Flyer and the Emergence of DeepSeek

High-Flyer made a major breakthrough by integrating artificial intelligence into its investment processes. In addition, the creation of the DeepSeek startup has caused a stir in Silicon Valley, challenging the West's previous dominance in AI technology. With its cost-effective large language model, DeepSeek has become an attractive alternative to Western solutions.

Growing Interest in AI Among Fund Managers

Following High-Flyer's lead, other Chinese hedge funds quickly followed suit:

1. Baiont Quant. This company is actively exploring the potential of machine learning for automating trades.

2. Wizard Quant and Mingshi Investment Management. These firms are also increasing their investments in AI research to enhance their trading strategies.

Moreover, many mutual fund management companies have begun to actively integrate DeepSeek technologies into their investment processes.

The Epicenter of AI Revolution in Investments

Feng Ji, CEO of Baiont Quant, emphasizes that AI offers new horizons for the investment business. "We are at the epicenter of a storm," he noted, highlighting the significance of AI adoption.

Competitive Edge in a Dynamic Environment

- AI technologies allow for faster and more accurate data processing.

- Managers not utilizing AI risk losing their competitive advantages.

Most hedge funds are using artificial intelligence not to create models like DeepSeek but to interpret market data and generate trading signals based on investors' risk profiles.

The phenomenal success of High-Flyer and DeepSeek underscores the importance of artificial intelligence in modern asset management, creating new opportunities and challenges for the Chinese industry.