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Reflections on the Practice and Future Prospects of Quantitative Trading in China

Author(s)

Yuxuan Hua

Affiliation(s)

School of Finance, Yunnan University of Finance and Economics, Kunming, Yunnan, China

Abstract

Based on experiences both in China and internationally, quantitative trading has shown certain positive effects in enhancing trading efficiency and market liquidity. However, it also poses risks of increasing market volatility under specific market conditions, necessitating guided and regulated development. This paper briefly introduces the characteristics of quantitative trading, reviews its development within China, analyzes its advantages and disadvantages, summarizes recent regulatory requirements, and reflects on its future prospects in China. Suggestions for the next steps in the regulated development of quantitative trading are also proposed.

Keywords

Quantitative Trading; Algorithmic Trading; High-frequency Trading; Medium and Low-frequency Strategies; Investors

References

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