Chinese retail investors are increasingly turning to DeepSeek and other artificial intelligence tools to navigate the stock market, marking a significant shift from last year’s government crackdown on computer-driven quantitative trading.
Embracing AI for market gains
Online crash courses and packed training sessions have become the norm as mom-and-pop investors adopt AI-powered models to beat the market. DeepSeek, backed by High-Flyer—a hedge fund based in eastern Hangzhou—has not only spurred a rally in Chinese stocks but has also reshaped perceptions of China’s $700 billion hedge fund industry. “The future is the digital age, and AI will be vital,” said Hong Yangjun at a weekend training session in downtown Shanghai.
Social media platforms are now awash with online courses that teach retail traders how to evaluate companies, select stocks, and even write trading codes using DeepSeek. Hangzhou-based trader Wen Hao noted, “Using quantitative tools to pick stocks saves a lot of time. You can also use DeepSeek to write codes,” reflecting the growing confidence among individual investors in leveraging technology for better market insights.
From backlash to adoption
This enthusiastic embrace of AI marks a stark turnaround from the public outcry just a year ago, when computer-driven quant funds were derided as “bloodsuckers” and blamed for market unfairness and volatility. At that time, regulators targeted the quant industry—then estimated at $260 billion—for its role in destabilizing the market. Now, the rapid adoption of DeepSeek is prompting changes at brokerages and wealth management firms as they adapt to a new era dominated by retail investor cash flow.
Last month, investors even paid 15,800 yuan each for a weekend lecture by Mao Yuchun, founder of Alpha Squared Capital, on trading stocks with AI. This trend highlights the growing acceptance of AI tools among individual investors, especially in a market where traditional financial advisory services once held sway.
Expert insights and caution
While the rise of DeepSeek signals a transformative moment for China’s stock market, some analysts urge caution. Larry Cao, principal analyst at FinAI Research, said DeepSeek’s cost efficiency and robust reasoning ability have made it popular, particularly as alternatives like ChatGPT remain off-limits in China. “People trust AI models more than they trust financial advisers, which is probably misplaced trust at least at this stage,” Cao warned, noting the risk of a herding effect if many retail traders rely on the same signals.
Feng Ji, CEO of Baiont Quant, added that DeepSeek has changed how the public views quant fund managers. “I can feel strongly that the public are thinking twice about quant fund managers' contributions to society. We actually provide liquidity and make the market more efficient,” he said.
A new era for retail investing
The surge in AI adoption comes as China’s stock market enjoys a robust start to the year, with brokerages racing to integrate AI models into their platforms. As the landscape shifts, retail investors are finding new ways to leverage technology to gain a competitive edge—a trend that could redefine market dynamics and investment strategies in the years ahead.
U.S. and Iranian officials said they had agreed on a framework to end their war, halt the U.S. blockade of Iran and reopen the Strait of Hormuz, a pre...
Start your day informed with the AnewZ Morning Brief. Here are the top stories for 15 June, covering the latest developments you need to know....
Leaders of the Group of Seven wealthy nations will meet at a French lakeside resort on Monday against a backdrop of preliminary deal to end U.S. and I...
Four people were killed while the Kyiv Pechersk Lavra monastery, a symbol of Ukrainian spiritual and cultural history, caught fire, in the heaviest Ru...
Türkiye and Saudi Arabia are aiming to establish a railway connection linking the two countries through Syria and Jordan within the next three to fou...
Market reaction to DeepSeek’s preview of its next-generation artificial intelligence model has been relatively subdued, in sharp contrast to the global shock triggered by its breakthrough releases last year.
The United States has issued an international warning accusing Chinese firms, including AI start-up DeepSeek, of allegedly stealing intellectual property from American artificial intelligence labs.
Chinese AI startup DeepSeek has introduced its newest model, DeepSeek-V3.2-Speciale, claiming it can perform some tasks as well as the latest models from Google DeepMind and OpenAI.
Germany’s data protection commissioner has called on Apple and Google to block the Chinese AI app DeepSeek from their platforms over illegal data transfers and privacy concerns.
Details of a reported draft memorandum of understanding between the United States and Iran offer the clearest picture yet of how both sides plan to end months of conflict and move towards a longer-term settlement.
Pakistan has warned that any attempt by India to block or significantly reduce river flows under the Indus Waters Treaty could have “far-reaching consequences”, after India's water minister said New Delhi was working to ensure that “not a single drop” of water reaches Pakistan in the coming years.
Armenia has every right to choose Europe. But Europe’s support for Armenia’s direction should not become automatic approval of its political process.
The U.S. and Iran say they have reached a deal to end their conflict, with an immediate ceasefire and reopening of the Strait of Hormuz after the lifting of the U.S. naval blockade. Talks will continue over the next 60 days to finalise the agreement
U.S. President Donald Trump has said a peace agreement with Iran is scheduled to be signed on Sunday in a post on social media, despite Tehran's Foreign Ministry spokesperson Esmaeil Baghaei saying no deal would be approved this weekend.
The Canadian government has introduced a digital safety bill that would ban children under the age of 16 from using social media, unless platforms meet specific safety standards.
NASA has named three American astronauts and one Italian astronaut to fly on its Artemis III mission, a major orbital test planned for late next year that will evaluate lunar landing vehicles developed by SpaceX and Blue Origin.
China will send an astronaut to its space station on Sunday for a one-year mission, the longest duration for the country so far. The mission will help study long-duration human physiology in space as China works toward a crewed Moon landing by 2030.
Anxiety over artificial intelligence is hardening among young workers as executives promote faster adoption and companies point to automation in fresh job cuts.
Hackers are increasingly using artificial intelligence to detect software vulnerabilities, reducing the time organisations have to respond to cyber threats, Verizon said in its annual data breach report.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment