SHANGHAISINGAPORE, June 5 Reuters Chinese quant hedge fund managers are rushing to explore ChatGPTstyle tools, embracing the emerging AI technology that has sparked a global frenzy since the release of the widely popular Microsoftbacked OpenAI chatbot.

Quants39; focus on advanced artificial intelligence to aid decisionmaking comes amid a tough investment environment, as China39;s postCOVID recovery wanes and competition rises in the country39;s 20 trillion yuan 3 trillion private fund industry.

ChatGPT is an epochmaking application … It can draw conclusions from a complicated network of relationships with numerous dimensions in ways human brains cannot, said Steve Chen, partner of Shanghaibased MX Capital.

Exploring its ability is now our main focus.

His hedge fund already uses ChatGPT to better understand a company39;s fundamentals and avoid value traps, project earnings power, and identify investment opportunities and risks.

ChatGPT, trained using a huge amount of data, can write poems, compose music, draw paintings, and generate other strikingly humanlike responses based on user prompts.

A ChatGPTlike tool boosts quants39; ability to process textrelated data, said Feng Ji, chairman of Baiont Capital.

We were also inspired by ChatGPT to build large models using trading data, instead of text, Feng said.

Feng39;s hedge fund, backed by former Google China chief and AI veteran KaiFu Lee, has invested heavily in hardware to enhance computing power required for…