At the 22nd China International Finance Forum held in Shanghai on December 19-20, Zheng Lianghai, Chief Economist of Fuanda Fund, shared insights on AI's transformative role in the fund industry and market outlook for 2026.
Zheng highlighted that AI's application in fund management is still in its early stages but will revolutionize front, middle, and back-office operations. Currently, AI primarily enhances two areas: investment research and portfolio management.
He noted that traditional investment models—whether active, passive index, or quantitative—have evolved from basic factor-based stock selection to AI-driven approaches that minimize human bias. "Investing is inherently counter-intuitive," Zheng observed. "Human subjectivity often leads to behavioral pitfalls like chasing rallies or suffering large drawdowns during market corrections."
Looking ahead, Zheng predicted that large AI models will deliver more efficient and stable investment outcomes compared to conventional methods.
For 2026, Zheng outlined three key projections: 1) China's economic transition from old to new growth drivers will remain central, though overvalued sectors may experience periodic corrections. 2) Both the ChiNext and SSE Composite indices have shown stable weekly performance since October, indicating strong potential for a spring rally next year. 3) The RMB is expected to appreciate, with commodities tied to new growth sectors continuing their strong performance.
The forum focused on building intelligent financial ecosystems in the digital economy era.
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