"Quantitative companies" rarely disclose "combat data", how much power is there in the A-share market?

time:2022-12-09 12:13:03source:chakarski.com author:Stock market
"Quantitative companies" rarely disclose "combat data", how much power is there in the A-share market?

In the past three years, quantitative investment has rapidly increased its voice in the Chinese market, and more than 20 quantitative institutions with a scale of tens of billions of dollars have emerged, galloping in the A-share and commodity markets. Quantitative investment is like a "black box", managers generally operate in a low-key manner, and the outside world knows little about it. The market has always had a question: What is the proportion of quantitative investment in A-share trading volume? This is directly related to the "background board" of the A-share market. Recently, a ten-billion-dollar private placement recruitment advertisement "actively" disclosed the "trading trump card". At a time when the current trading of A-shares is sluggish, the "quantitative companies" that provide liquidity to the market, their trading strength is very important to the market.

"Key Figures" of the Recruitment Notice

Shishitang noticed that an institution called Kuande Investment recently issued a global recruitment notice, recruiting quantitative researchers among global college graduates , Machine Learning Researcher and Development Engineer. According to the filing information of the China Foundation Association, Kuande Investment was established in November 2014. The actual controller, Zhang Daqing, once worked for SAC Capital and Bosera Fund in the United States. The agency's official website also stated that the company's partners have never had any practical experience in losing annual investment in various extreme market environments in the past 15 years. It is worth noting that the job posting of Qundu Investment discloses multiple internal operating data, which is the first time among quantitative institutions. (As shown in the above picture) The current asset management scale of this institution (referring to the scale of assets under entrusted management) exceeds 30 billion yuan, and the self-operated scale (referring to the scale of the company's own funds) exceeds 5 billion yuan. In addition to the scale data, Quande Investment showed two relatively "rare" data: the futures market accounted for more than 8% of the stock market transactions, and the stock market accounted for more than 8% Hash rate and effective code size. In addition, the organization also showed its "brain strength": its talents have won more than 20 gold medals in the Mathematical Olympiad. Many core personnel of the first-line institutions in the quantitative circle have the experience of winning the Olympic Games in middle school, and then they are recommended to enter key universities. The knowledge structure and mining ability of such talents are especially favored by quantitative managers.

Showing its "trading trump card"

For a long time, quantitative private equity managers have been "secretly secretive" and rarely speak out to the outside world, and it is even more difficult to see the details of their internal operations. Why does Kuande Investment, which manages over 30 billion assets, show its "trading card" - the data on the proportion of market transactions? On the one hand, the above-mentioned key data appear in the job postings, in order to "show" to potential candidates their position in the market, for example, the trading volume of futures accounts for nearly one-tenth of the whole market; on the other hand, theoretically quantitative investment can Improve stock market liquidity, and the improvement in liquidity in turn increases more trading opportunities. The institution accounts for eight out of 1,000 stock market transactions, thus demonstrating its ability to provide liquidity. However, Kuande Investment did not further explain the subdivision data behind its transaction proportion, such as the transaction proportion of self-operated funds and asset management funds. Industry information feedback: Some of the top quantification institutions have internal high-yield strategies, which are "exclusively provided" for employee funds, self-operated products, or correspond to higher market risk-return ranges and turnover rates.

How powerful is the "quantitative big company"

In the third quarter of 2021, the turnover of A-shares exceeded one trillion yuan in more than 30 trading days. At the time, a sell-side analyst claimed that quantitative trading accounted for 50% of A-share transactions. As soon as this statement came out, the market was in an uproar. Subsequently, the regulatory authorities stated that the operation mode and industry ecology of China's capital market are undergoing profound changes, and mentioned the supervision of new trading methods such as quantitative high frequency. For a time, the market share of quantitative trading investment has become the focus of hot discussion. After that, Magic Square, which had managed hundreds of billions of assets, issued a document stating: "According to the estimates of all parties, it is generally believed that the quantitative trading volume accounts for about 10 to 20% of the entire market." According to the magic square at that time: A-share quantitative funds are short, medium and long. Combining cycles, the turnover rate of most funds is relatively low, which is roughly similar to that of ordinary short-term traders in short-term cycles, and roughly similar to subjective investment institutions in medium- and long-term cycles. It is worth noting that the proportion of 10%-20% mentioned in the above magic square is the estimated data of the whole industry. So, how much of the quantitative private equity of the camp of more than 10 billion can account for it? In the above, Kuande Investment, which manages more than 30 billion yuan, disclosed the relevant proportion data, then we use the scale of 30 billion as the dividing line. Based on the information of private equity industry research institutions, the current asset management scale of Mingcai Investment, Jiukun Investment, Magic Square Quantitative, Lingjun Investment, Chengzhiqiqi, Yanfu Investment and Tianyan Capital exceeds 30 billion. Due to limited information, we cannot know the scale of self-operated and asset management funds of the above-mentioned institutions, nor their latest overall turnover rate. However, if it is assumed that the turnover rate, asset management scale and holding period of the above-mentioned eight institutions are similar to those of Kuande, then according to the share of 8/1000 of the stock market transactions of Kuande Investments, the total trading proportion of listed institutions should exceed 6%. . In addition to the eight listed quantitative institutions with a value of over 30 billion, there are more than 10 quantitative private placements with a scale of between 10 billion and 30 billion. Relatively small institutions also have the opportunity to use strategies with higher turnover rates, so the latter may theoretically account for slightly less transactions than the first group. Based on such an estimate, the proportion of current transactions in the adjusted market by quantitative institutions may have dropped compared to previous peak periods, and the overall transaction's active contribution to the market is still evident. Source: Shishitang, author Sun Jiannan edited by Yuan Chang This article does not constitute personal investment advice, nor does it take into account the special investment objectives, financial situation or needs of individual users. Users should consider whether any opinions, views or conclusions contained herein are appropriate to their particular circumstances. There are risks in the market, investment needs to be cautious, please make independent judgments and decisions.
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