Quantitative finance, or financial engineering, currently has three main development directions in China: trading strategy research, derivative pricing and risk management.

Research on trading strategy, including stock selection, timing and arbitrage. Stock selection is mainly based on α and β strategies. In terms of timing, machine learning methods are very popular in China, such as SVM and neural network. At present, this work is more common in the research department (financial engineering group), self-operated department (quantitative trading) and asset management department of securities firms and futures companies. For the study of trading strategy, you can look at the special research report on metalworking of securities firms. The special research reports on metalworking of some big securities firms are still very valuable. For details, please refer to the ranking of New Fortune Metalworking Group.

Derivative pricing refers to the pricing and arbitrage of OTC (OTC) options, which is more common in OTC marketing department (OTC products) and asset management department of securities firms. Some institutional business departments of first-line brokers also have trading teams responsible for the pricing of OTC options. The pricing of derivatives is mostly occupied by international students. No way, it is inevitable that foreign option theory will be more mature. And personally, if you want to do derivative pricing, you'd better brush a doctorate. ...

Risk management, mostly focusing on hedging, usually requires good knowledge of portfolio management and derivatives hedging. delta hedging and gamma hedging are naturally essential. More common in the risk control department of securities firms.