In recent years, A shares frequently encounter systemic risks. In such a market situation, domestic hedge funds are gradually favored by many high-end investors because they can get returns unrelated to the rise and fall of the stock market. It is reported that Guotai Junan Securities Asset Management Company, a pioneer in quantitative investment in the industry, will issue "Xiang Jun Hedge" products in China Merchants Bank from September 12, which is the eighth hedging product issued by the company. This product adopts the mainstream strategy of international hedge funds-high frequency statistical arbitrage strategy. Statistics show that Guotai Junan's products are leading the way, not only achieving positive returns in the long bear market of 20 1 1, but the annualized returns of "Xiang Jun Arbitrage No.2" and "Xiang Jun Arbitrage 1" since 20 12 have reached 7.5% and 6.7% respectively. Yao Junmin, a hedge investment manager in Xiang Jun, said that the characteristics of the first and second generation Xiang Jun Quantization and Xiang Jun Arbitrage are "almost zero risk and certain income". Investors yearn for risk-free arbitrage opportunities, but it is often difficult to exist for a long time, or the income is meager. In this context, statistical arbitrage has entered the field of vision of domestic mainstream quantitative investors. Statistical arbitrage is based on the statistical analysis of historical data, estimating the probability distribution of related variables and the stability of probability characteristics, and using mathematical probability to guide arbitrage trading. Compared with risk-free arbitrage, statistical arbitrage increases a little risk, but it can get several times of arbitrage opportunities. It is reported that "Xiang Jun Hedging" not only introduces arbitrage statistical strategy, but also adopts more efficient and sensitive high-frequency arbitrage, and its calculation and trading speed can reach the second or even millisecond level, only capturing various short-term market opportunities and not taking market risks. Therefore, the rise and fall of the market is not directly related to the income. High-frequency statistical arbitrage strategy has become the mainstream strategy of global hedge funds, and China's quantitative trading is also constantly exploring progress. Guotai Junan's quantitative products undoubtedly fill the gap in this field in China. With the gradual deregulation of regulatory authorities and encouragement of product innovation, a brand-new territory of asset management business of securities firms is taking shape. It is understood that the quantitative investment management team headed by Dr. Zhang Biao, CEO of Guotai Junan Securities Asset Management Company, has been working hard in the field of quantitative investment for 12 years, managing 7 products, effectively avoiding market systemic risks, and its safety and profitability have been tested. Both the quantity of products and the design and application of quantitative models are in the leading position in the industry. The third-generation "Xiang Jun Hedge" launched this time will once again lead the innovation trend of the domestic asset market.