Emerging new models of cross-border cooperation in Internet finance

21st Century Business Herald Report from Ningxia, Shenzhen

Following the "baby" category, a new model emerges for cross-border cooperation in Internet finance.

July 8, GF Fund jointly Baidu, China Securities Index jointly developed 100 Strategy 100 index released. This is the first index product to be compiled on the basis of Internet financial big data. It is also the "first intimate contact" between the Internet giant and the financial industry in the area of ​​equity investment.

This cooperation is called by the industry to open up a new mode of "touching the net" in the fund industry. The fund companies sell "treasure" products on the Internet platform to develop big data applications under the Internet platform.

21st Century Business Herald reporter learned that, following the GF together to develop Baidu Internet finance big data, the Southern Fund and Sina Finance will launch big data strategy index, but also based on the Internet "big data" of mining.

This wave of big data index has been spreading.

21st Century Business Herald reporter learned that there are fund companies in Shenzhen and the East Fortune Network, great wisdom and docking platform, intends to use big data technology to develop index products.

Mining big data applications

100 100 is the Internet giant and the financial industry in the field of equity investment in the "first intimate contact", is also the industry's first big data based on the Internet application strategy index. The one hundred percent index is based on the big financial Baidu data index stocks index.

"The construction of the stock selection model of the 100th Fat 100 Index mainly relies on the technology of Baidu Big Data, which enables the selection of index stocks through the integration of Baidu Internet financial big data, traditional financial data and quantitative stock selection model." The core members of the project, one hundred hair 100 Fund manager appointed Dr. Ji Feng told 21st Century Economic Reporter.

The 100th pick of the 100th Fatty is derived from the Internet financial big data, which is based on the theory of behavioral finance - the concept of limited attention. The BFS model, which is a comprehensive emotional model constructed through the big data of Baidu Internet finance, reflects the results more directly and accurately The degree of investor attention to a particular stock.

Ji Feng introduction, index research and development team using the big data of Baidu Internet technology, investment property analysis, and fully tap the investment behind the big data value.

This is an exploration and attempt to develop index methods.

"The traditional index-picking method in the market mainly uses the stock market value, stock volume and financial indicators as the stock selection factor, but has never selected the index stocks according to the combination of big data on the Internet as an important factor." Ji Feng said.

Lu Zhiming, general manager of GF Fund Investment Department, told reporters that the birth of the 100th Fatty Index is essentially an exponential sampling process of implanting the Internet gene and the quantitative model into the traditional fundamentals.

Coincidentally. Southern Fund and Sina Finance's forthcoming Financial Big Data Strategy Index is also based on the Internet "big data" of mining.

"Sina Finance's stock channel, financial news, stock forum and Sina microblogging, the listed companies have timely and comprehensive coverage of information, interactive financial information from professional investors." Sina's project manager said Sina Finance Data platform implies massive investment aids.

The work of the Southern Fund's quantitative team is to make use of Sina's big data in the financial field to deeply tap the potential trends of netizens' attention and news click-through rates and other potential trends in the securities market to provide reference for the index preparation.

"Through the qualitative and quantitative analysis of big data, we can find out the relationship between the expectation of stocks, expectation of growth, the expectation of valuation enhancement and the performance of stock price, construct the strategic factors, select the stocks with the expectation of excess returns, and construct, compile and publish Strategy Index. "Lei Jun, a senior researcher with Quantitative Investment Department of Southern Fund, said.

Lei Jun said the South Fund has completed a comprehensive wide base index, the subject industry index historical simulation performance estimates. Internal measurement results show that the index has good market representation, profitability and liquidity.

"Internet Gene" index beat the market?

Internet giants and fund companies make use of big data application development strategy index, causing the fund industry, e-commerce and quantitative investment department's attention. Their main concern is whether index products with the "Internet gene" can beat the market?

"The core issue of the index is whether investors can make money." The stock market is a small number of customers make money in the market, relying on big data analysis of the behavior of most customers, can help customers achieve profitability? "Shanghai fund company e-commerce person Have questions about this.

Director of Internet Finance at another Shanghai-based fund company told reporters that he is very concerned about the index products based on big data development.

"The traditional index is positioned to reflect the average risk and return level in the market (ie, the traditional Beta revenue) and the index positioning is a gain that goes beyond the market benchmark (ie, the traditional Alpha yield)." The director said his top concern was big data Whether the development of strategic index can achieve excess returns.

As of July 8, the Southern Fund and Sina Finance based on big data development of the financial index has not been released to the public, the only sample is the GF Fund and Baidu and the CSI 100 Index 100 companies.

According to the reporter, the financial assets of the 100th Fat 100 index weighs only 14%. The high-added industries mainly focus on the fields of alternative consumption, information technology, telecommunication business and industry, and these are emerging industries that represent the current economic restructuring.

From 2009 to June 30, 2014, the historical analog yield rate of Baifa 100 reached 545%, higher than the cumulative gain of 19% of Shanghai and Shenzhen 300 and 12% of the Shanghai Composite Index over the same period, and also beat the market performance The benchmark China Securities 56% of the cumulative income.

However, historical analog returns do not represent the future.

Insiders pointed out that based on the index compiled by Baidu Financial Search, its constituent stocks to some extent equivalent to the "hot stocks", there may be raised when the stock price into the sample.

In this regard, Ji Feng explained that the 100 samples based on 100 large-scale Internet banking financial data and stock fundamentals data, but will also join the quantitative investment strategy, which builds the Baidu Internet financial big data comprehensive emotional model.

To put it in a nutshell, when the attention of a particular stock reaches its peak at some stage and the share price has been reversed, such stocks will be excluded. In the meantime, if the short-term gains of some stocks reach a certain stage, there will be the target of momentum effect and the sample will be transferred.

It is noteworthy that, unlike the traditional index of six months to adjust the samples on a regular basis, the 100 hair index will be monthly components of the sample.

"This is to better reflect the market or industry rotation, but also help capture the investment opportunities more acutely." Ji Feng pointed out that the use of big data mining 100 Index found that the value of investor financial behavior to capture different periods of the market Rotate the law, and in accordance with this law quickly adjust the corresponding constituent stocks.

As a result, most of the constituents selected for the 100th FTSE 100 are concentrated in stocks with stable fundamentals and stable performance reports and investment values ​​in line with the market or industry rotation characteristics.