On March 15th, Haitong Securities’ “Chengzhou Tinghai” series forum event with the theme “Seeing Arks in Yu, Moving Forward with Quantity” was successfully held in Chongqing. This forum, hosted by the Digital Finance Department of Haitong Securities and co-organized by Nanjing AcceleCom Information Technology Co., Ltd., engaged in in-depth discussions with well-known private equity fund managers on hot topics in the private equity industry and changes in commonly used systems in the private equity fund industry.
Opening Speech by Haitong Securities
Haitong Securities’ leadership expressed that, recently in accordance with the unified deployment of the China Securities Regulatory Commission, Haitong Securities has been continuously improving the basic institutional construction for relevant regulatory arrangements, and has launched a programmatic trading reporting platform. This initiative aims to ensure that participating entities strictly adhere to the programmatic trading reporting system and regulatory arrangements, continuously strengthen market trading behavior monitoring and supervision, while protecting the legitimate rights and interests of investors, and to effectively maintain a benign and healthy market order and environment.
Speech by Yubei District Leader
In his speech, Mr. Shiyu Li , Deputy District Chief of Yubei District, Chongqing City, pointed out that Yubei District is the economic hub and financial stronghold of Chongqing. The district’s total economic volume has ranked first in the city for sixteen consecutive years. As the main pillar industry of Yubei District, the financial sector boasts 675 financial institutions in the whole district, with securities turnover exceeding one trillion yuan. He sincerely invited financial experts and investment talents to pay attention to and invest in Yubei District, while congratulating the successful conclusion of the “Chengzhou Tinghai” forum.
Low-Latency Technology Sharing by AcceleCom
Mr. Lisheng Chen, Pre-Sales Manager from AcceleCom, shared his insights on the application and development of low-latency technology in the securities industry, covering topics such as the impact factors of network latency and methods to reduce latency in securities trading networks. The discussion focused on the advantages and necessity of technology-enabled digitization industries.
Insights from Industry Guests
- General Manager of WenBoInvestments
Thoughtful, innovating, and forward-looking strategy development and iteration, along with stringent risk control, are crucial for the survival, development and core competitiveness of a quantitative manager. One of WenBo Investment’s advantages lies in the accumulation of years of experience in T0 and short-term strategy development, with its own unique strengths in the development of quantity-price factors, and strong strategy iteration capabilities.
- Deputy General Managerof ZhiCheng-ZhuoYuan Investments
Investments in any era can be supported by using the technology of that era to achieve goals. In fact, quantitative trading is not that mysterious, it simply utilizes the technology of this era to seek excess returns. Technological innovations, including recent advancements like large language models, are constantly evolving with a variety of underlying technologies innovating behind it. Making quantitative trading either means to own the technology or to own a head start. It’s essential to stay updated on the forefront of technology, adapt to changes, and bring the cutting-edge technology to use.
- CEO of Derivatives Asset
Quantitative funds in China now also have considerable management scale, but the industry is still in its early stage of development. With the improvement of derivative products and trading rules, the industry will gradually mature. Derivatives Asset has a set of scientific risk control system, with multiple risk control and internal control modules integrated into its self-developed trading system. It also has a set of comprehensive risk control system covering pre-trade, intra-trade, and post-trade risks, ensuring risk management even in extreme situations. Derivatives Asset focuses on the balance between efficiency and scale, without indulging in expansion blindly for the benefits brought by scale growth. The investment is a marathon, and its sustainability is the only way to create stable returns.
- Assistant Chairman of Quant Investment
Adhering to a “customer-centric” approach, Quant Investment always provides strategy output from the perspective of customer risk preferences, liquidity requirements, investment views, and asset balance. It continues to strengthen investment in its expertise, focusing on meticulous craftsmanship without deviating from its deep-rooted track. At the same time, it pays attention to market dynamics and expands the team to provide more new strategies and more self-style quantitative shelves. Additionally, it prioritizes the cost-performance ratio of return and risk, adopts a more stringent and cautious approach to risk control, strives to do a good job of risk management, and practices a long-term and stable performance.
- General Managerof Investor Relations from X Asset Management
The ecosystem of quantitative trading relies on the theoretical development of mathematical statistics and machine learning in academia, as well as the standardized, emerging, and alternative data in the era of big data, and it also depends on financial innovation. Meanwhile, standardized trading behavior, practical risk control compliance, and sustainable performance continuity are crucial for client services. Risk control is the primary task for private equity fund managers, even if it means missing out on some market rebound opportunities, they still need to adhere to risk control in order to protect client interests.
- CEO and Partnerof Meridian Investment
We cannot predict black swan events in the stock market, but we must respect them and be prepared. In certain market trends, simply pursuing excess returns is empty words for investors, obtaining the absolute return is real. Starting from 2023, Meridian Investment has implemented loss-limiting protection measures for index decline in its long index enhancement strategies. It focuses not only on risk control in excess Alpha but also on preventing black swan events in index Beta by adding “major illness insurance” to Beta. In the test brought by extreme market conditions, it fully recognizes that controlling risk is the key to creating returns.
- Executive Directorof Grand Quants
Grand Quants believes that the composition of funding sources is determined by the development stage of the manager, and different sources of funding have their own characteristics. Institutional direct investment funds prefer low-volatility strategies, while securities firms and third-party distributors often favor index-enhanced products. Regardless of the nature of the funding sources, the manager should treat all investors equally, with decision-making power resting in the hands of investors.
- Partner of Gaia-Qingke Investment
From the perspective of corporate governance, private equity funds need to focus on internal and external management for long-term development. Externally, we should prioritize investors’ investment experience by designing products that match their risk tolerance. Internally, different departments should understand and comprehend each other’s work. From a market outlook perspective, due to the current low valuation of CSI 300 Index, Beta has certain advantages, and the scale of CSI 300 index-enhanced products may experience significant growth this year.
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Low-latency technology, as an integral part of the digital economy, has brought highly competitive ultra-speed systems to the industry. AcceleCom and Haitong Securities will continue to collaborate to continuously optimize their own technologies to meet market demands and provide strong impetus for high-quality development.
