HSBC launches first AI-powered index investment product in China

HSBC Bank (China) launched on Wednesday an artificial intelligence-powered equity index investment product, becoming the first bank in China to offer such a method for equity investing.

The product, US Equity 5 Index, turns big data into investment insight by using AI to evaluate stocks with the aim of identifying international investment opportunities for individual investors in China to grow their wealth.

It also uses a rules-based process to objectively evaluate publicly traded companies and rebalances its equity portfolio monthly; to manage short-term volatility, it reallocates between the equity portfolio and cash component on a daily basis.

Richard Li, executive vice president and head of Wealth and Personal Banking at HSBC China, said: “Adoption of digital wealth and investment tools in China is accelerating at a faster pace than other markets globally.”

AI combined with big data equips investors with an innovative and more precise tool to navigate through increasingly volatile international markets and the up-take of these new solutions is increasing among retail investors, especially millennials, seeking portfolio diversification, he added.