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China Bond Fund Gains 31% With Robots Running All Day, Every Day

  • Zheshang’s Jia Teng uses AI to screen convertible bond market
  • Hybrid securities fared better than stocks or credit last year

A Chinese fund manager trounced almost every rival last year, counting on a machine-learning program that never stops running to analyze the country’s convertible-bond market.

Jia Teng’s Zheshang Fengli Strengthen Bond Fund returned 31% in 2021 using an artificial intelligence system that crunches dozens of variables. Developed in-house, the program screens the securities for technical indicators and sell signals like clause-trigger levels. The strategy helped the fund grow its assets under management twenty times over to 4.6 billion yuan ($725 million) in the nine months through September 2021, the latest available data.