DeepSeek, a Chinese AI start-up founded by Liang Wenfeng, has rapidly gained prominence with its breakthrough technology, triggering a massive stock rout in the US and Europe. The company's success challenges the existing dominance of US companies in the AI field, demonstrating the potential for innovation in China despite resource constraints.
Liang Wenfeng ’s quantitative hedge fund firm apologised profusely to investors for losing money during a tumultuous period for China ’s stock market .
It has also drawn shock and awe over how Liang, an engineering graduate who has never studied or worked outside of mainland China, pulled off such a feat. He has demonstrated that with local AI engineers, constrained access to the latest semiconductor technologies and limited resources, it is possible to match — and even surpass — the best in the field.
High-Flyer was as much an outlier in China’s quant industry as DeepSeek is to the global AI industry. AI allowed High-Flyer to achieve “a lot of innovations” and develop a multi-strategy, multi-cycle investment model to “pile up” returns from different sources of returns, according to a 2020 brochure for the firm. Its flagship product benchmarked against the CSI 500 Index integrated low-risk strategies like intraday trading, allowing it to beat the gauge by a combined 120 percentage points in the previous three years, it showed.
Three months later, its marketing head warned that certain volatility-sensitive clients should redeem their money — a highly unusual move.
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