Two Sigma discusses potential of investing in China: 'it has a big, deep capital market'

AI and machine learning, they've actually been in our DNA for a long time. So it's not something new to us over decades. And so we were founded with the premise that investment process needs to be scientific. And so this is for, for us an evolution rather than a revolution. We started using really machine learning AI as, as you mentioned, you know, many years ago. The key to us though is actually not just about the technology, is about how you use the technology to read patterns from data. If you look at what's happening globally, we're seeing large amount of unstructured data also being created. And therefore there's a lot of value to be found from these unstructured data. If you look at China, for example, we're in a China summit. It's such a large data ecosystem that there's a lot that we can do and that's why we're building domestic research team to help undiscover, discover that kind of that that value. So paint some numbers on that for me, Kenny, in terms of performance, when you winnow all this data through your model, then you are exploiting the dislocations that crop up in this market volatility. How has that impacted performance? I wouldn't say we're exploiting dislocation and volatility. I would say though that we do believe that China as the second largest economy in the world, we need to make sure that we invest locally to build domestic capability. We are finding China to be one of the most interesting markets for us globally. And the reason why it's interesting is, are really 2 two things. It has a big deep capital market. It also has a lot of, as I mentioned, unique sets of data that we could undiscover value to. Now, I do want to add one more point, which is that as you find ways to discover value in those unstructured data, we're quickly finding that we need to build a capability that leverages our global expertise and bring it to China, but work with our local capability too. And that's really key. And it's a highly complex market. It is an evolution as opposed to a revolution in terms of market reforms. What is the data telling you about Chinese investor sentiments, whether it's amongst the retailers or the institutions? Well, you know, I, I, I wouldn't be able to say exactly what is, what is the data telling us? I, I, but I do want to share two things. They are quite proactive in the market. So if you look at the trend, retail investors have continued to be really proactive in involving themselves in the capital markets. The second thing is what I mentioned about how deep the market is, right for us, we are seeing that both in the commodities market, commodities futures market, in the equities market, they're both really deep pools of capital. We're equally engaged in both, both asset classes. And we believe that if we look at globally where, where are the interesting opportunities, we care a lot about how deep the capital markets are and can we find alpha. And on those two fronts, we do believe that China is still extremely interesting.

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