The use of AI in trading by Chinese hedge fund High-Flyer has driven technological advancements in China’s US$10 trillion fund management industry.

High-Flyer, known for founding AI startup DeepSeek, has increased its reliance on AI to manage a multi-billion dollar portfolio.

DeepSeek’s cost-efficient large language model has gained traction among financial institutions, leading firms like Baiont Quant, Wizard Quant, and Mingshi Investment Management to boost their AI research efforts.

Mutual funds, including China Merchants Fund, E Fund, and Dacheng Fund, have also integrated DeepSeek into their operations.

Baiont Quant CEO Feng Ji noted that AI skepticism is fading, with firms now seeing it as essential for survival. Companies are using AI to process market data and generate trading signals, while recruitment efforts for AI researchers and engineers are rising.

Shenzhen’s government is allocating 4.5 billion yuan (US$620.75 million) to subsidize computing expenses for hedge funds investing in AI.

Recent DeepSeek developments