Beijing-headquartered China Asset Management Company will integrate machine learning platform, Boosted Insights, into its investment process, according to a statement from the asset manager.
Boosted Insights is a web-based machine learning software developed by Boosted.ai, an artificial intelligence (AI) firm founded in 2017 and based in Toronto and New York.
For now, China AMC is using the platform only to collect data to assist with its research, according to a Beijing-based China AMC spokesman, noting that Boosted.ai’s algorithm will not yet be directly applied to the investment strategies of its mutual funds.
“At this stage, we are mainly exploring the combination of AI and fundamental research,” the spokesman told FSA.
China AMC hopes the machine learning platform will assist with stock tracking and risk control in its investment strategies. Once the firm is more familiar with the technology, it will then consider integrating AI into the investment process, he added.
The data currently collected and used from the platform include financial data covering A-shares, Hong Kong and US stocks, as well as derivatives, macro-economic data, and ESG data, the spokesman explained.
“We selected Boosted.ai to provide us with finance-specific machine learning algorithms as we share a similar vision of how explainable AI will improve the day-to-day decisions made by asset managers around the world,” Bill Chen, chief data officer and chief technology officer at China AMC, said in the statement.
Chen emphasised that the implementation of machine learning into the investment process is one of firm’s highest priorities.
With RMB1.59trn ($245.5 bn) in assets under management as of the end of 2020, China AMC is one of the largest asset managers in China. The firm has accelerated data integration in recent years. Its Hong Kong branch co-launched an AI-powered China A-share portfolio in 2017, together with Hong Kong-based Magnum Research. Magnum provides the software that constructs the portfolio, which is only available to professional investors, while China AMC executes the trades as the named portfolio manager, based on the instructions it is given.
