The adoption of AI by Chinese hedge fund High-Flyer drives technological advancements in China’s US$10 trillion fund management sector.
High-Flyer, the founder of AI startup DeepSeek, has significantly increased its use of AI to manage a multi-billion dollar portfolio.
DeepSeek’s cost-effective large language model has gained popularity among financial institutions, prompting firms such as Baiont Quant, Wizard Quant, and Mingshi Investment Management to expand their AI research. Mutual funds like China Merchants Fund, E Fund, and Dacheng Fund have also integrated DeepSeek into their operations.
Baiont Quant CEO Feng Ji highlighted that skepticism toward AI is diminishing, with firms now considering it crucial for survival. Companies leverage AI to analyze market data and generate trading signals, increasing demand for AI researchers and engineers.
Additionally, the Shenzhen government provides subsidies of 4.5 billion yuan (US$620.75 million) to cover computing expenses for hedge funds investing in AI.
