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Credit Suisse's China securities joint venture launches the AES® algorithmic trading platform
"The launch of AES® for CSFS demonstrates the unique competitive advantage that we can create together by combining the synergies of Credit Suisse's best-in-class trading technology and CSFS' expertise in the China market. 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.
The AES® platform incorporates data science, machine learning technologies and quantitative methods to optimize clients' trading performance. It comprises a comprehensive range of AES® algorithmic trading strategies, which can help clients to trade China A-shares efficiently and achieve best execution.
The launch of AES algorithmic trading in China A-shares comes as China expedites reform and the opening up of its domestic capital market to international investors. In January 2019, the Chinese government announced it would double the investment quota of the QFII scheme from USD150 billion to USD300 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 USD50 billion of fresh foreign capital into the A-share market by November 2019.
"China remains at the heart of our focus in Asia," says Neil Hosie, Head of Equities Asia Pacific at Credit Suisse. "China's journey towards integrating the country's capital market with the international investment community has just begun. As China continues to open up its domestic financial market to allow greater foreign investor participation, traders will require highly sophisticated execution solutions to navigate these liquid markets. With the launch of AES in China, we are now strongly positioned to capture these opportunities for our clients."
Credit Suisse owns 33.3% of the joint venture, 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. CSFS has further expanded its client base by launching a new equity trading service that is tailored to domestic private securities investment funds.