Research on the Current Situation of Quantitative Investment in China

Abstract

Quantitative investment, as one of the many tools in the investment toolkit, plays a significant role in investment practice. Quantitative investment strategies encompass quantitative industry allocation, stock selection, and market timing strategies, among others. In the highly developed capital markets of the United States, quantitative investment has a history spanning several decades. It has garnered praise from numerous corporations and individual investors for its stable investment returns and rational investment style, making it an essential decision-making factor for other investors as well. In China, quantitative investment is still in its nascent stages. This article analyzes several issues existing in the Chinese quantitative investment landscape, such as limited hedging mechanisms for investment strategies, some strategies having a significant impact on the market environment, and the incompatibility of the unique Chinese financial market environment with traditional quantitative investment strategies. The article proposes corresponding solutions to these problems, which hold positive implications for further improving China's financial markets.