China quant funds draw billions as AI outperforms human traders
AI-powered quantitative funds in China are drawing billions of yuan on the back of performance that is outpacing human traders. Ubiquant, one of the top players, raised 2.6 billion yuan for a new fund in under two hours. The trend underscores AI's rising weight in China's capital markets.
AI-powered quantitative funds in China are attracting large sums of capital on the back of returns that outpace human traders. Ubiquant, one of the sector's leading names, raised 2.6 billion yuan (about S$495 million) for a new fund in under two hours.
These funds, which use algorithmic strategies, process vast data sets to try to anticipate market moves. The intense investor interest signals that traditional active management is coming under pressure from AI-driven approaches.
Analysts warned that the rapid growth of quant funds could raise market volatility and attract regulatory attention. AI's role in China's capital markets is expected to widen further in the period ahead, as more managers race to build competitive models and win a share of surging inflows.
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