DeepSeek “dethrones” experts, Chinese investors race to use AI to choose stocks

Instead of seeking advice from financial advisors, many Chinese investors are turning to AI like DeepSeek to analyze the market, select stocks, and make investment decisions. This trend is changing the way China's stock market operates, but it also poses many risks.

In recent months, courses teaching how to use AI to trade stocks have exploded in China. Instead of relying on expert analysis, many individual investors are turning to DeepSeek, a homegrown AI model that can analyze financial data, evaluate companies, and come up with investment strategies.

Chinese investors use DeepSeek to evaluate businesses, select stocks and make investment strategies

"The future is digital, and AI will become an indispensable tool. The stock market will soon be a battlefield for computer algorithms," said Hong Yangjun, a lecturer at an AI trading course in Shanghai.

This marks a big change from a year ago, when quant funds were criticized for causing market volatility. Now, DeepSeek is not only accepted but has become a sought-after "virtual advisor" for many investors.

Last month, hundreds of investors paid 15,800 yuan (about 55 million VND) to attend a weekend course on AI stock trading taught by Mao Yuchun, founder of Alpha Squared Capital. The course attracted participants by promoting Alpha Squared’s connection to High-Flyer, the quantitative fund behind DeepSeek.

Not only live classes, online courses teaching how to use DeepSeek to analyze stocks and create trading strategies are also flooding Chinese social networks.

"AI tools save a lot of time when picking stocks. I also use DeepSeek to write programming code to automate trading," said Wen Hao, an investor in Hangzhou.

DeepSeek's popularity is forcing brokerages and asset managers to change. "In the past, investors needed expert advice. Now they just need to ask DeepSeek," said Zhou Lefeng, director of Xiangcai Securities.

Many trading platforms in China are integrating AI to provide automated analysis, trend forecasts and trading suggestions. Goldman Sachs said that the Chinese stock market is having its most positive start to 2024 in history, partly thanks to AI tools like DeepSeek.

Despite its warm reception, not everyone believes that AI is the "magic key" for stock investing.

“People are putting too much faith in AI,” said Larry Cao, an expert at FinAI Research. “Models like DeepSeek, while impressive, are not necessarily smarter than the majority of investors.” He warned of a herd effect if many investors use the same AI signal, leading to unpredictable market fluctuations.

Feng Ji, CEO of Baiont Quant fund, admits that AI has limitations: "AI helps trade more effectively, but does not guarantee profits. It is just a support tool, not a complete replacement for humans."

DeepSeek is changing the way Chinese investors approach the stock market. However, relying too much on AI can lead to systemic risks, especially in a capital market dominated by retail investors like China.

"AI is a powerful tool, but investors still need to understand market principles and should not blindly trust machines," Feng Ji advised.

With the continuous development of AI, perhaps in the near future, the "stock market battlefield" will truly become a race between algorithms. But will humans be completely replaced? The answer is still open.

Source: https://thoibaonganhang.vn/deepseek-soan-ngoi-chuyen-gia-nha-dau-tu-trung-quoc-dua-nhau-dung-ai-chon-co-phieu-163652.html