It relies on data indicators to conduct a detailed survey of stocks, sets expected indicators to test their potential, evaluates the economic recovery industries through specific economic models, assigns industry weights, and combines the investment ideas and analysis of fund managers.

This 360-degree market scan of quantitative funds can avoid the selection limitation caused by personal prejudice and lack of energy of fund managers, and grasp subtle structural investment opportunities through refined investment operations.

Matters needing attention in quantifying funds

For A shares, the macro-monetary environment, economic policies and institutional trends of investors will all passivate the model based on historical data development. For example, the value factor shows good universality, stability and effectiveness in the long run, but with the continuous inflow of foreign capital and the improvement of investors' risk preference.

The market is more and more tolerant of high-quality asset valuation, which leads to a certain retreat of strategies related to value factors since 20 19. The strategic passivation caused by changes in market environment and investors' institutions requires a deep understanding of the profit logic of the strategy, appropriate adjustment of the strategic structure, proper timing and position management to avoid strategic passivation.