Credit Suisse and its securities joint venture Credit Suisse Founder Securities have started operating an algorithmic trading platform that incorporates data science, machine learning, and quantitative tools.
Through this partnership, Credit Suisse Founder Securities (CSFS) will enable onshore institutional investors, as well as Qualified Foreign Institutional Investors (QFIIs) and RMB, Qualified Foreign Institutional Investors (RQFIIs) to trade China A-shares using the same suite of algorithms on the AES® platform as international investors use for trading A-shares via the Stock Connect mutual access scheme, the company said in a media release on Friday.
The launch comes as China expedites reform and the opening of its domestic capital market to international investors.
Fresh Foreign Capital
In January 2019, the Chinese government announced it would double the investment quota of the QFII scheme from $150 billion to $300 billion.
Last month, global index provider MSCI announced plans to quadruple the inclusion factor of A-shares into its global benchmark indices. Credit Suisse estimates there will be an inflow of close to $50 billion of fresh foreign capital into the A-share market by November 2019.
Global Standards
«Through this partnership, we are now delivering our global standards in algorithmic trading and risk controls, to our clients trading in the onshore China markets,» said Patrick Kelly, Head of Execution Services, Asia Pacific at Credit Suisse, at the 22nd Credit Suisse Asian Investment Conference.
Credit Suisse owns 33.3 percent of the joint venture based in Beijing, which was established in 2008. The remainder is held by Founder Securities. CSFS launched its A-share brokerage business in October 2016 and is among the first global banks to operate an onshore brokerage business.
