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Opening price on the first day: $0.0025

Maximum supply: 21 million BTC

Circulation market capitalization: US$1.5 trillion

If you want to view real-time Bitcoin prices, you can download the following software:

The easy-to-understand explanation of Bitcoin (btc) is as follows:

1. What is Bitcoin?

Bitcoin is a decentralized peer-to-peer digital currency that is issued based on a specific algorithm and does not rely on any central organization or middleman.

The concept of Bitcoin (BitCoin) was first proposed by Satoshi Nakamoto in 2009. The open source software designed and released based on Satoshi Nakamoto's ideas and the P2P network built on it were designed. It is a P2P form of digital currency. Peer-to-peer transmission means a decentralized payment system.

The biggest difference between Bitcoin and other virtual currencies is that its total quantity is very limited and it is extremely scarce. The currency system had no more than 10.5 million coins in 4 years, after which the total number will be permanently limited to 21 million coins.

2. How does Bitcoin work?

The Bitcoin network shares a public ledger called the "blockchain." This ledger contains every transaction that has been processed, allowing the user's computer to verify the validity of each transaction. The authenticity of each transaction is protected by a digital signature corresponding to the sending address, giving all users full control over sending Bitcoins from their own Bitcoin address. Additionally, anyone can use the computing power of specialized hardware to process transactions and be rewarded with Bitcoin for this service. Often this is called "mining".

3. What is a Bitcoin wallet?

A “wallet” is basically the Bitcoin equivalent of a bank account. Wallets allow you to receive Bitcoins, store them, and send them to others. There are two main types of wallets, software and web. A software wallet is a wallet that you install on your computer or mobile device. You have full control over your Bitcoin security, but such wallets can sometimes be difficult to install and maintain. A web wallet, or escrow wallet, is a wallet that is hosted by a third party. These are generally easier to use, but you must trust the provider (host) to maintain a high level of security to protect your cryptocurrency.

4. What is blockchain?

Blockchain is a digital ledger in which transactions in Bitcoin or other cryptocurrencies are synchronized and publicly recorded.

5. What is mining?

Mining is the process of employing computing power to prevent Bitcoin transactions from being reversed and introducing new Bitcoins into the system. Technically speaking, mining is the calculation of the hash value of the block header, including a reference to the previous block, the hash value of a set of transactions, and a random number (an arbitrary number used only once for authentication).

6. How to buy Bitcoin?

The most common way to buy Bitcoin is on a Bitcoin exchange platform, or directly from others through marketplaces and auction sites. There are many ways to purchase, you can buy with cash, credit and debit cards, wire transfer or even with other cryptocurrencies.

What are the Bitcoin trading platforms? The detailed introduction of BTC trading APP is as follows:

1. Bitget is a well-known digital currency trading platform that provides safe and convenient trading services. The platform supports a variety of mainstream digital currency trading pairs, covering the trading needs of all types of users. Bitget has a strong technical team and a stable trading system to ensure user asset security and transaction stability. In addition, the exchange also provides professional market analysis and trading guidance to help users conduct better investment transactions. As one of the leading digital currency trading platforms, Bitget operates with integrity and is committed to creating a fair and transparent trading environment for users.

2. C.net is a leading digital currency trading platform, providing safe, stable and convenient services. The platform supports a variety of mainstream digital currency trading pairs, providing users with an efficient trading experience. C.net has a strong technical team and professional customer service team, and is committed to providing users with the best quality trading environment. As a leader in the industry, C.com adheres to the principles of fairness, justice and transparency and strives to create a safe and fast digital asset trading platform for users.

3. Korbit is a well-known cryptocurrency trading platform that provides users with safe, fast and stable digital asset trading services. The platform supports multiple cryptocurrency trading pairs, covering mainstream digital currencies and emerging crypto assets to meet the diverse trading needs of users. Korbit uses advanced technology and strict risk control systems to ensure the safety of user assets and provide investors with a reliable trading environment. Users can quickly buy and sell digital currencies through simple operations, obtain real-time market information, and realize asset appreciation. Korbit is committed to providing a convenient and transparent trading experience for global digital currency enthusiasts, helping users achieve wealth appreciation.

4. Bequant Exchange is one of the world's leading cryptocurrency trading platforms, providing trading services for a variety of digital assets such as Bitcoin and Ethereum. The exchange has strong technical strength and strict risk control system to provide users with a safe and stable trading environment. Users can quickly buy and sell digital currencies through simple operations and enjoy a convenient trading experience. At the same time, Bequant pays attention to the security of user funds and takes various measures to ensure the security of user assets, which is deeply trusted by users.

5. Coinstar Exchange is one of the world's most well-known cryptocurrency trading platforms, with users all over the world. The platform provides a stable and secure trading environment and supports transactions in multiple cryptocurrencies. Users can quickly and easily buy and sell cryptocurrencies such as Bitcoin and Ethereum through the platform, and enjoy professional customer service. Coinstar adheres to the concepts of transparency, fairness and efficiency to provide users with a good trading experience. As a leader in the field of cryptocurrency, Binxing has been committed to providing users with the highest quality services and the most abundant trading options.

6. The currency exchange is one of the world's most well-known cryptocurrency trading platforms, providing a stable and secure trading environment and is deeply trusted by investors. Users can easily trade mainstream cryptocurrencies such as Bitcoin and Ethereum. The currency market has a rich trading history and good reputation, providing users with efficient and fast trading services. The platform also pays attention to the security of user funds and adopts strict security measures to protect user assets, making it one of the first choices for many digital currency investors.

7. Global Yitong Exchange is a well-known cryptocurrency trading platform that provides a safe and stable trading environment, attracting the attention and participation of global users. The exchange supports the trading of a variety of mainstream cryptocurrencies and has a professional team to ensure the smooth progress of transactions. Users can quickly deposit and withdraw coins through this platform and enjoy low-rate transaction services. Global Yitong Exchange adheres to the principles of fairness and transparency to provide users with a high-quality trading experience.

8. BuyUcoin is a well-known cryptocurrency exchange that provides users with a safe and convenient trading platform. The platform supports multiple digital currency transactions, and users can buy, sell, deposit and withdraw cryptocurrencies. BuyUcoin has rich trading experience and complete security measures to protect user assets. The exchange provides real-time market data and professional trading tools to help users make efficient trading decisions. BuyUcoin is committed to creating a good trading experience for users and becoming the preferred trading platform trusted by users.

9. Birake Exchange is a platform focusing on digital currency trading, providing a safe and stable trading environment and a fast and convenient trading experience. Users can conduct transactions in various digital currencies such as Bitcoin and Ethereum here. The platform has abundant trading volume and liquidity, providing users with good trading opportunities. At the same time, Birake Exchange focuses on the safety of user funds and ensures the safety of the transaction process through strict supervision and multiple security measures. Users can safely conduct digital currency transactions on Birake Exchange and enjoy a convenient trading experience.

10. HOTBI Exchange is one of the world's leading cryptocurrency trading platforms, providing safe and stable digital asset trading services. Users can trade multiple cryptocurrencies such as Bitcoin and Ethereum on the platform, and enjoy convenient deposits and withdrawals and an efficient trading experience. HOTBI adheres to a professional technical team and rich industry experience, and is committed to providing users with a high-quality trading environment and professional service support. Whether you are a novice or an experienced investor, you can find a digital asset trading solution that suits you at HOTBI.

Hey, dear friends, today let’s talk about those digital currencies that make people’s hearts beat faster – especially Bitcoin! As you know, the price of Bitcoin is always like a roller coaster, going up and down, making people both excited and nervous. Now let us take a look at the latest market trend of Bitcoin and take you into this world full of unknowns and opportunities in the most relaxed way.

Let’s do a little popular science. Bitcoin, a digital currency born in 2009, has set off a revolution on a global scale with its decentralized characteristics and blockchain technology. It is not only a currency, but also an asset, an investment tool, and even a belief. What is the current price of Bitcoin? Don't worry, I will tell you slowly.

Before looking at the price of Bitcoin, we must first understand a few key points. The price of Bitcoin is affected by a variety of factors, such as market demand, global economic conditions, policy supervision, technological development, etc. These factors work together to make the price of Bitcoin fluctuate frequently, and sometimes even experience dramatic rises and falls.

Now let us take a look at the latest USD price of Bitcoin. Due to real-time changes in market prices, the following prices are for reference only. Please refer to the actual transaction price for specific transactions.

The price of Bitcoin is constantly changing, like ocean waves, sometimes calm and sometimes turbulent. If you want to grasp the market situation of Bitcoin, you need to pay close attention to market dynamics and analyze various factors that may affect the price. Global economic fluctuations, adjustments to monetary policy, the impact of technological progress, and even the occurrence of certain major events may become the key to affecting the price of Bitcoin.

Let’s take a look at some characteristics of the price of Bitcoin. The price of Bitcoin is highly volatile, which means that investing in Bitcoin requires a certain risk tolerance. The global nature of Bitcoin makes it affected by factors from all over the world, which requires investors to have a certain international perspective. As an emerging asset, the value and price of Bitcoin are still being recognized and accepted by the market, which also means that it has huge development potential.

How to invest in Bitcoin? Here are a few tips. You need to understand the basic knowledge of Bitcoin, including its working principle, trading methods, etc. You can choose a reliable trading platform to buy and sell Bitcoin. According to your own risk tolerance and investment goals, formulate an appropriate investment strategy. Stay patient and calm, and do not be affected by short-term fluctuations in the market.

Investing in Bitcoin is not without risks. Market fluctuations, technical risks, policy risks, etc. are all factors that investors need to consider. Before investing in Bitcoin, you must be fully prepared and researched, and do not blindly follow the trend.

Let’s go back to the latest USD price of Bitcoin. Due to real-time changes in market prices, we cannot give a specific number. You can obtain the latest Bitcoin price through various channels, such as professional financial websites, real-time quotations from trading platforms, etc. Remember, you need to be cautious when investing in Bitcoin, and do not be fooled by temporary price fluctuations.

What I want to say is that as an emerging asset, Bitcoin’s development and changes are full of uncertainties. It is this uncertainty that also gives us unlimited imagination and investment opportunities. As long as you are willing to learn, research, and remain rational, the world of Bitcoin will open to you.

Well, that’s it for today’s sharing. I hope my sharing can help you have a deeper understanding of Bitcoin, and I hope you can find your own opportunities in the world of Bitcoin. Remember, investment needs to be cautious, but opportunities are always reserved for those who are prepared. Let’s look forward to the next exciting chapter of Bitcoin!

News Express

1. China Securities Regulatory Commission: The relevant market rumors that “quantitative trading in the commodity futures market has been suspended” are false.

The person in charge of the relevant department of the China Securities Regulatory Commission stated that the relevant market rumors that "quantitative trading in the commodity futures market has been suspended" are false news. The policy of reducing handling fees in the commodity futures market has been implemented for many years, and each commodity futures exchange has reduced handling fees from futures companies to a certain extent in accordance with regulations. In 2024, in order to strengthen transaction supervision and maintain the market order of the "three public affairs", each commodity futures exchange will optimize and adjust the fee reduction policy, and implement differentiated fee reduction policies for programmed trading customers who meet certain standards, instead of suspending programmed trading in the futures market. Comment: Rumors about quantitative trading have been circulating for a month or two, and were finally confirmed by the China Securities Regulatory Commission. When A-shares are weak, the market is too sensitive to quantitative trading, and it is a pity to run first when there is any trouble.

2. The National Data Administration and 17 other departments jointly issued the "Data Elements ×" Three-Year Action Plan (2024-2026)"

The National Data Administration and 17 other departments jointly issued the "Data Elements ×" Three-Year Action Plan (2024-2026). The "Action Plan" selects 12 industries and fields, including industrial manufacturing, modern agriculture, commerce and circulation, transportation, financial services, technological innovation, cultural tourism, medical and health, emergency management, meteorological services, urban governance, and green and low carbon, to promote the multiplier effect of data elements and release the value of data elements. Comment: Data service providers in related vertical fields are expected to benefit; at the same time, in the process of market circulation, the demand for data storage, processing and analysis, confirmation, security, transactions and other links will also continue to be released.

3. Shanghai: Encourage qualified online new economy red-chip companies to return to the domestic capital market and support qualified platform companies to be listed domestically and overseas in accordance with laws and regulations.

The General Office of the Shanghai Municipal People's Government issued "Several Policies and Measures in Shanghai to Promote the Healthy Development of the Online New Economy". It is proposed to support platform enterprises to play the role of chain owners. Guide the city's online new economy platform companies to reasonably determine payment settlement, platform commission and other service fees, and provide certain support to high-quality small and micro merchants in terms of merchant entry, online store deposits, publicity and promotion, information services, and professional training. Encourage seed companies to go public for financing. Support online new economic enterprises that are in line with national strategies, have breakthroughs in key core technologies, and have high market recognition to be included in the restructured and listed cultivation enterprise database in accordance with regulations. Encourage qualified online new economy red-chip companies to return to the domestic capital market, and support qualified platform companies to be listed domestically and overseas in accordance with laws and regulations. Comment: At a time when the capital market is confused about Internet technology stocks, Shanghai has given everyone reassurance. It depends on which company can come out on top on the Science and Technology Innovation Board.

4. 17 departments including the National Data Administration: guide and encourage all types of social capital to invest in the data industry and support data providers in listing and financing

The National Data Administration and 17 other departments jointly issued the "Data Elements ×" Three-Year Action Plan (2024-2026). It mentioned that financial support should be strengthened to implement the "Data Element ×" pilot project, and investment within the central budget and other types of funds should be coordinated to increase support. Financial institutions are encouraged to increase credit support and optimize financial services in accordance with market-oriented principles. Explore diversified investment and financing models in accordance with laws and regulations, give full play to the role of relevant guidance funds and industrial funds, and guide and encourage all types of social capital to invest in the data industry. Support data providers to go public and raise funds. Comment: The data will be in the table soon, which is also a potential hidden line for A shares this year. It just depends on when it can ignite market sentiment.

5. The response time of the investor interactive platform is only after the market is fixed and will not be closed.

According to anecdotal reports, investor interactive platforms such as "Interactive Easy" and "SSE e-Interactive" will be shut down to reduce the real-time impact of intraday or pre-market announcements on the stock price. According to Fang’s understanding, this rumor is untrue and there are no arrangements to suspend or close the investor interaction platform. From the perspective of interactive platform applications, the user base is very broad, which plays a role in eliminating information gaps. However, the reply time of interactive content has been adjusted. Previously it could be sent before or during the market, but later it can only be sent after the market. For example, the reply time of Interactive Content is 15:00-24:00. Comment: Previously, during the trading session, Sudavige and Simei Media had no bottom line in their comments on the interactive platform, causing stock prices to fluctuate sharply. To this end, supervision has finally closed the loopholes.

6. Changbai Mountain: The number of tourists received by the main scenic spot of Changbai Mountain in 2023 increased by 260.5% year-on-year.

Changbai Mountain disclosed a stock trading risk warning announcement. The main scenic spot of Changbai Mountain received a total of 2.748 million tourists in 2023, a year-on-year increase of 260.5% and an increase of 9.4% compared with the same period in 2019. The number of tourists has increased in winter. At present, the company's ice and snow project revenue still accounts for a small proportion of the company's overall revenue. The company's main business is still the tourist passenger transportation business and hotel business. There are no other major changes in the company's fundamentals. Comment: Heilongjiang failed to find a good target in the A-share market, and finally settled on Geely Changbaishan. This is also a reflection of the hot sentiment in the tourism market in the A-share market. At this point, A-shares need a tourism stock to respond.

7. Passenger Car Association: It is estimated that the passenger car market retail sales in December will be 2.361 million units, a year-on-year increase of 9%

According to preliminary estimates from the Passenger Car Association, the passenger car market retailed 2.361 million units in December, a year-on-year increase of 9% and a month-on-month increase of 14%. The cumulative retail sales so far this year were 21.706 million units, a year-on-year increase of 6%. The national passenger car manufacturers wholesaled 2.796 million units, a year-on-year increase of 24%, and a month-on-month increase of 10%. The cumulative wholesale sales of this year was 25.611 million units, a year-on-year increase of 10%.

8. U.S. solid-state battery concept stock QuantumScape surged 40% overnight

U.S. solid-state battery concept stock QuantumScape has been rising since the opening, and finally recorded a 43.09% increase. The direct cause of QuantumScape's rise was an announcement from PowerCo, the Volkswagen Group's battery subsidiary. PowerCo confirmed through hands-on experiments that QuantumScape's anodeless solid-state battery sample can be charged and discharged 1,000 times, and the battery has "almost no aging" when the test is completed, and still maintains 95% of its capacity (or discharge energy retention rate). Comment: Pay attention to whether it will be mapped to A shares.

Overnight external market

U.S. Stocks: After Wednesday’s Federal Reserve meeting minutes hinted that the Fed may maintain restrictive high interest rates for a period of time, the U.S. ADP private sector employment, known as the “small non-agricultural sector”, increased by 164,000, a substantial increase of 39,000 more than expected, and the unexpected month-on-month decline in the number of first-time jobless claims last week once again suppressed the Federal Reserve’s sharp increase in the year In anticipation of an interest rate cut, U.S. stocks closed mixed, with large technology stocks and Chinese concept stocks mostly falling, while digital currency concept stocks rebounded. Amazon fell more than 2%, and MobilEye fell more than 24%, hitting a new low since the end of April last year and the largest single-day decline since its listing. Energy Chain Smart Electric, Xunlei, etc. fell more than 5%, and Alibaba and Bilibili fell more than 2.5%.

Futures market: The U.S. dollar index turned higher in the short term, but finally stopped four consecutive gains and fell away from a nearly three-week high; the Japanese yen fell by more than 1% in consecutive days; the offshore yuan fell by more than 200 points in the intraday session, once again falling below 7.17 and hitting a three-week low; gold futures rose to $2,050, bidding farewell to the closing low since December 18 refreshed on Wednesday, and Lun, Tonglun, and nickel fell for the fifth consecutive day; crude oil failed to rebound for two days and turned lower during the session, New York Crude oil fell to US$72.19, Brent crude oil fell 0.84%, and U.S. oil and U.S. oil failed to continue to break away from the closing low since December 13th refreshed on Tuesday. U.S. bond yields once rose by 10 basis points, and the 10-year yield rose above 4.0% for two consecutive days. European government bond prices fell, and yields rose by more than 10 basis points intraday. German bond yields erased Wednesday's decline.

market strategy

The market fell again. Judging from the GEM index, last Thursday's big positive line has been broken by the closing price, which can be regarded as a signal that the rebound is over. Although theoretically there is a possibility of a double bottom, it is difficult to make a judgment. If there is another mid- to long-yin break, it will be officially confirmed and you can wait for further confirmation signals.

Theme nuggets

Graphene: According to reports, researchers at the Georgia Institute of Technology in the United States recently created the world's first functional semiconductor made of graphene. The research team achieved a breakthrough by using a special furnace to grow graphene on silicon carbide wafers. The study found that epitaxial graphene chemically bonds to silicon carbide and begins to exhibit semiconductor properties. Measurements showed that their graphene semiconductor has 10 times the mobility of silicon. This breakthrough opens the door to the development of entirely new electronic products.

Targets: Del Future (002631), Huali Family (600503)

Emergency robots: The Ministry of Emergency Management and the Ministry of Industry and Information Technology issued guidance on accelerating the development of emergency robots. The opinion proposes that by 2025, a batch of advanced emergency robots will be developed to significantly improve the scientific, professional, refined and intelligent levels; a batch of practical test and demonstration application bases for emergency robots in key scenarios will be built to gradually improve the development ecological system; the deployment of emergency robots will continue to increase, the equipment system will be basically constructed, and the level of practical application and support will be comprehensively improved. Strengthen the innovative application of cloud computing, artificial intelligence, big data, etc. in emergency robots to improve the level of robot intelligence.

Target: Topstar (300607), Boshi Shares (002698)

Announcement selection

【Major matters】

6 days and 5 boards Zhiwei Intelligence: Hongmeng series products are still in the development and testing stage and no sales orders have been formed yet

Top Group: Plans to invest 5 billion yuan in building a production base for core robot components

Yahua Electronics: Currently there is no specific implementation of Hongmeng medical care scenario application

Corun: Plans to participate in the establishment of industrial funds with RMB 200 million to invest in energy storage and other fields

【Mergers, Acquisitions and Reorganization】

Wuzhong, Jiangsu: Termination of issuance of shares to specific objects and withdrawal of application documents

FiberHome Electronics: The review of major asset restructuring involving military industry matters has been approved by the Bureau of Science, Technology and Industry for National Defense

[Increase and reduce holdings]

Ribo Fashion: Daixi Investment and Whale Domain Asset Management plan to reduce their holdings in the company by no more than 1% each

Only Education: Jiaotong University Industry Group and Jiaotong University Enterprise Management Center plan to reduce their holdings by no more than 1% of their shares

Huayang International: Persons acting in concert with the actual controller plan to reduce their holdings by no more than 1% of the shares

Pulian Software: The company’s supervisors plan to increase their holdings to no less than 8,000 shares

Jiuzhou Pharmaceutical: Plans to repurchase shares for 50 million to 100 million yuan

Jinhe Industrial: The second phase of the core employee stock ownership plan promises not to reduce its holdings within 6 months

【Other matters】

Feilong Shares: Net profit is expected to increase by 197%-233% year-on-year in 2023

Dafeng Industrial: Net profit is expected to decrease by 50%-70% year-on-year in 2023

Yangtze Power: In 2023, the total power generation of the company’s six domestic cascade power stations will increase by 5.34% year-on-year.

GEM: Shipments of core product ternary precursors will increase by more than 10% year-on-year in 2023

Zhejiang Construction Investment: Subsidiary won the bid for a 1.179 billion yuan project

Longjian Co., Ltd.: Won the bid for engineering projects totaling 497 million yuan

Dalian Shengya: The company’s current production and operation activities are normal

Safran Water: The Nankang sewage treatment plant project was repurchased by the government and the BOT franchise was terminated

As the cryptocurrency market continues to evolve, investors continue to pay attention to the market dynamics of Ethereum and Bitcoin. Today, we will conduct an in-depth analysis of "Ethereum and Bitcoin Today's Latest Price" to help you better understand this area and provide a reference for your investment decisions.

Bitcoin Today: Price Action and Market Sentiment

Bitcoin (BTC), as the market leader, remains the first choice for many investors. In today’s market, Bitcoin’s price fluctuations have attracted widespread attention. As of now, the latest price of Bitcoin is around $45,500, up 2% from yesterday. This upward trend is due in part to a positive market response to Bitcoin’s fundamentals, such as the growing number of merchants accepting Bitcoin as a form of payment and continued attention from institutional investors.

At the same time, market sentiment is also increasing amid stability. According to the latest sentiment index, investor confidence is returning, which is partly driving Bitcoin's price rebound. Nonetheless, due to certain uncertainties in the current market, such as fluctuations in the global economic situation and changes in regulatory policies, investors still need to remain vigilant and ensure sensitivity to market changes.

Ethereum market update: blessings brought by technological progress

At the same time, the market performance of Ethereum (ETH) is also worthy of attention. Currently, the latest price of Ethereum is $3,200, an increase of 3% from the previous trading day. Ethereum’s gains have been largely driven by the continued development of its ecosystem and the launch of new applications and decentralized finance (DeFi) projects. The successful implementation of these projects has led to increased usage of Ethereum, thereby driving up its price.

Ethereum’s 2023 upgrade, or “merger,” lays the foundation for improvements in its performance and efficiency while also elevating its status as a smart contract platform. As more and more developers flood into the Ethereum network, its key indicators such as the number of active addresses and transaction activity on the network have shown a positive growth trend, which is undoubtedly an important factor driving the rise in the price of Ethereum.

Market Analysis: The Interaction between Ethereum and Bitcoin

In the cryptocurrency market, the relationship between Bitcoin and Ethereum is complex and nuanced. Judging from historical data, the price fluctuations of Bitcoin often affect the market of Ethereum. For example, when the price of Bitcoin rises, it usually leads to a rise in Ethereum and other altcoins. This interactive characteristic provides investors with diversified investment strategies.

Conversely, when Bitcoin experiences a correction, Ethereum and other cryptoassets often suffer as well. Therefore, investors often need to take the dynamics of Bitcoin as an important reference when evaluating various digital currencies. At the same time, due to Ethereum's active development in the DeFi and NFT fields, its market activity and investor attention continue to increase, making Ethereum gradually occupy an important position in the market.

Investment Advice: Seize Opportunities and Risks

Even though today’s trading shows a bullish trend for Bitcoin and Ethereum, investors still need to proceed with caution. On the one hand, the current signs of market recovery show opportunities, especially when both technical and fundamental performance are good; on the other hand, market uncertainty cannot be ignored.

For long-term investors, establishing a reasonable investment strategy is crucial. It is recommended that investors pay attention to changes in market fundamentals, maintain sensitivity to technological innovation, and at the same time set reasonable stop loss levels to guard against potential risks. In addition, from the perspective of diversified investment, a moderate allocation of Ethereum and Bitcoin may be a wise choice to reduce the volatility risk of the overall investment.

Summary: Pay attention to the market and invest rationally

Overall, today’s latest Ethereum and Bitcoin prices show a positive trend. In the dynamic changes of the cryptocurrency market, staying rational and accurately grasping the pulse of the market will be the key to successful investment. We hope that this article will be helpful for you to understand "the latest price of Ethereum and Bitcoin today" and wish all investors to obtain ideal returns in the future market.

こんにちは!

ネットワークMonitoring カメラとAI portrait recognizes システムのシステム・ケイです.

パソコンを扱っていると、「64bit(ビット)」や「200MB(メガバイト)》という単语を见たり、hear いたりする chance が多くありますよね.ですが、そのmeaningや ConceptをcorrectにUnderstandingできている人はそう多くないかもしれません.

This time は、「bit(ビット)」や「Byte(バイト)」といった语についての Commentaryと、データのsavingに关するお语をします.ぜひlastまでご覧ください.

「bit(ビット)」「Byte(バイト)」とは?

「bit(ビット)」 「Byte(バイト)」は、「Information amountをexpressionす単bit」です.

つまり、「m(メートル)」や「g(グラム)」といった単bitのkindのひとつです.

Basic に, 8bit=1Byte です.その后は1000 timesするごとにHUび方が変わり、

1000Byte=1KB（キロバイト）

1000KB=1MB（メガバイト）

1000MB＝1GB（ギガバイト）

1000GB=1TB（テラバイト）

となります.

Example: えば, スマホのデータcommunication に关して, 「animation の见ぎでギガが足りない」 "といったがありますが、ここからきています" "といった".

「bps(ビットevery second)」という単単傂よく使われるので合わせてえておきましょう.

"What's the bit of information in one second?" is the watch, and the communication speed is the same.

1000bps data, 1000bit data in 1 second.

How much information is there in 1 bit?

The information on the project above is a table of information, a bit of information, a bit of information, a brief introduction to the project, and an example of the image of the subject. 「50 0KB》と书かれているのを见ても、「Information」という目に见えないもののquantityをイメージするのは无しいですよね.

これをイメージするためには, コンピュータが动く士组みを小しだけUnderstanding しなければなりません.

実は、コンピュータは电気 Signalの「オン(1)」と「オフ(0)」しか提款することができません.

そのため「Binary number」という、0と1のみで constitutes the されたnumberをmake the って move いています.

Example: えば、3桁のbinary numberなら、

000 001

010 011

100 101

110 111

というように8通りの値をperformance することができます.

"Bit" refers to the smallest unit of information, and "1bit" refers to the information quantity of "1 桁のbinary number".

「0」「1」の2通りの値しかexpressionすることができません.

「1Byte」は「8bit」なので、8桁のbinary numberのinformation amountです.

00000000 00000001

00000010 00000011

00000100・・・

と続けていくと, all で256 through りの値をperformance できるinformation amount であることがわかります.

500KB imageなら、500×1000＝500,000Byte、さらに8を hangけると4,000,000bitと语いchangeえることができます.

Windowsなら、ファイルをrightクリック→プロパティでそのファイルのデータ(=information quantity)をconfirmationすることができます.

2-digit number, K(キロ)＝10 00ではなく、2の10 multiply(＝1024)とみなすこともあります.

In this case, "KiB" and "MiB" are the same.

1KB, 1KiB, 1TB, 1TiB, and 1KB.その difference がおよそ100GBと大きなviolation いになってしまうため、Attention しましょう.

How much information is there?

ズバリ, animation です.

The animation contains a large number of portraits and the expressions of Suhaya's voice and emotions are expressed in the animation. The added bonus of the report, the text, and the photo, are more accurate than the original ones.

また, high resolution, high quality になるほどデータ大は大きくなります.

绮丽なanimationやリアルな音を楽しむことができる Party, expansion of the memory field of the memory field, The time of sending and receiving the letter is the same, and the communication volume is the same as the current time.

バイトに正すと道方もないdigitに・・・

High resolution and low maintenance?

システム・ケイは, ネットワーク supervised the カメラを多く抉っている会社です.

Monitor the long-term photography of the camera, the basics of the camera, and the measurement of the distance and the tasks of the subject.

では、どうすればHigh-resolutionをMaintenanceしたままデータquantityを小なくできるのでしょうか?

データcompression technology uses

データの実性的なinformationを宝ったまま、データquantityをらすtechniqueです.

Example: えば、データに人间がhearきtakeれるlimit よりも高い音が有まれていた场合、そのPart of the information is not private.

実はそのような「无駄なinformation」もデータには多く偾れてThe compression technology of いるので and データを makes the うことはとても effective.

It is a daily routine that is private and convenient, and has a lot of opportunities to use it, and it is convenient and technical.

システム・ケイのimage compression technology について, detailed しくはこちら!

Image compression technology? Introducing the speciality of Tetra Toro!

Moving body 検知 (モーション検知) function is used

The image is reflected in the human world, the car, the equipment is moved, and the function is understood.

こちらは主にsupervised カメラでの影视においてActive するfunction で、moving body 検知 によるrecording のオンオフのAutomatically cut the り alternative えができるため, record the time を suppress え, and reduce the データ amount をらすことができます.

The moving body's function is clear and detailed!

What is the moving body? Introducing the setting method of the 対応 model!

モーション検知 (moving body 検知) function とは

まとめ

The last one is the last one.

Contents of the note: Questioning, Monitoring, and Monitoring Detailed information, detailed information, detailed information, detailed information, and detailed information!

お见 accumulate り, ごphase talk など, お気軽におquestion い合わせください!

おaskい合わせはこちら

Quantitative giant Lingjun Investment has once again been involved in a public controversy.

Recently, the news that "various securities firms and subsidiaries are comprehensively sorting out and checking whether any of the resigned employees of their units have gone to work in Ningbo Lingjun" has spread in the industry.

In response, on March 8, Lingjun Investment issued an announcement stating that the news was a rumor and that the company had reported the relevant situation to the regulatory authorities in a timely manner and would report the case to the relevant authorities.

Lingjun Investment said it had reported the situation to the regulatory authorities

On March 8, market news said: “Each brokerage firm and its subsidiaries have comprehensively sorted out and checked whether any of the resigned employees of their units have gone to work in Ningbo Lingjun.” In response to this, Lingjun Investment stated that the news was an attempt to impersonate a state agency, maliciously spread rumors, and is suspected of violating the law. The company has reported the relevant situation to the regulatory authorities in a timely manner and will report the case to the relevant authorities.

Since Lingjun Investment restricted trading last month, there have been various "little essays" in the market. There are rumors about Lingjun Investment, involving false resumes of executives, personal attacks and abuses, fabricating false information about the company's operations, etc. There are also rumors targeting the quantitative industry such as industry bans, severe crackdowns, suspension of DMA business, suspension of quantitative sales, etc., and even false news published in the name of a state agency.

Lingjun Investment said in a statement that in recent days, in order to gain attention and traffic, some Internet self-media have continued to maliciously fabricate and spread a large number of rumors involving the company, and slandered the company and its senior executives. The content involves forging false resumes of senior executives, personal attacks and abuses, fabricating false information about the company's operations, etc., and even pretending to be state agencies to release false news, spread market rumors, mislead public opinion, and cause serious interference to the company's normal operations.

Lingjun Investment stated that some self-media with ulterior motives have organized and premeditated malicious rumors and slander against the company and the entire quantitative industry in order to gain traffic and their own interests, which has seriously affected investor confidence and has been suspected of violating relevant laws and regulations. Our company has reported the relevant situation to the regulatory authorities in a timely manner, reported the case to the relevant authorities, and taken necessary legal measures to resolutely safeguard our company's legitimate rights and interests and the normal order of the capital market.

Lingjun Investment calls on cooperation channels, investors and the general public to remain rational and not believe or spread rumors. At the same time, we also hope to work with the media and netizens to maintain a healthy and orderly online environment and resist malicious hype and false reports.

Just punished by the exchange

On February 20, the news that Lingjun Investment was condemned and restricted from trading by the Shenzhen Stock Exchange and the Shanghai Stock Exchange attracted market attention.

According to an announcement from the Shanghai Stock Exchange, on February 19, the Shanghai Stock Exchange discovered during transaction monitoring that from 9:30:00 to 9:31:00, multiple products managed by Ningbo Lingjun sold a large amount of Shanghai stock stocks totaling 1.195 billion yuan, during which the Shanghai Composite Index fell rapidly in a short period of time.

It was found that the above-mentioned transactions of Ningbo Lingjun violated the provisions of Article 7.2, Item (6) of the "Shanghai Stock Exchange Trading Rules" (hereinafter referred to as the "Trading Rules"), which "automatically generate or issue trading instructions through computer programs to conduct programmed transactions, affecting the security of the Shanghai Stock Exchange system or the normal trading order."

According to the relevant provisions of Article 7.8 of the "Trading Rules" and the "Measures for the Implementation of Disciplinary Punishments and Supervisory Measures of the Shanghai Stock Exchange", the Shanghai Stock Exchange decided to continuously implement regulatory measures to suspend investor account transactions for related products managed by Ningbo Lingjun from February 20, 2024 to February 22, 2024, that is, to suspend all stock transactions of relevant product accounts listed and traded on the Shanghai Stock Exchange during the above period, and at the same time initiate disciplinary procedures to publicly condemn Ningbo Lingjun.

As for the Shenzhen Stock Exchange, on February 19, the Shenzhen Stock Exchange discovered during transaction monitoring that from 9:30:00 to 9:30:42, multiple securities accounts under the name of Ningbo Lingjun automatically generated trading instructions through computer programs, placed a large number of orders in a short period of time, and sold Shenzhen Stock Exchange stocks totaling 1.372 billion yuan. During this period, the Shenzhen Stock Exchange Component Index fell rapidly, affecting the normal trading order, and constituting abnormal trading behavior as stipulated in Article 6.2 Item 6 of the "Shenzhen Stock Exchange Trading Rules".

The announcement emphasized that since the beginning of this year, the securities account under the name of Ningbo Lingjun has been subject to written warnings and other supervisory measures due to abnormal trading behavior many times, but it has not corrected it and continued to have abnormal trading behavior. In accordance with the Shenzhen Stock Exchange's "Implementation Rules for Restricted Trading", "Measures for the Implementation of Self-Regulatory Measures and Disciplinary Punishments" and other relevant regulations, the Shenzhen Stock Exchange decided to impose trading restrictions on the relevant securities accounts under the name of Ningbo Lingjun from February 20, 2024 to February 22, 2024, restricting him from buying and selling all stocks listed and traded on the Shenzhen Stock Exchange during the above period, and initiating procedures for public condemnation and disciplinary sanctions against Ningbo Lingjun.

Lingjun Investment responded again today, saying that as a local quantitative investment institution, it has always adhered to the concept of being patriotic, abiding by laws and operating in compliance with the law, and devoting itself to public welfare. It is optimistic about and insists on being long in the Chinese stock market for a long time, and its stock positions have always been close to full. Regarding the recent trading restrictions imposed by the Shanghai and Shenzhen Stock Exchanges due to abnormal trading during certain trading sessions on February 19, 2024, the company has deeply reflected and made thorough rectifications, and sincerely welcomes normal supervision from all walks of life.

Quantitative supervision becomes more stringent

Regulators have tightened their supervision of quantitative trading in the stock market.

In early March, the Shanghai Stock Exchange and the Shenzhen Stock Exchange jointly held a transaction compliance training for quantitative private equity institutions, with heads and business backbones from 28 leading quantitative private equity institutions participating. The first part of the training content is to reiterate the types of abnormal transactions; the second part is to guide regulations through regulatory examples, requiring quantitative private equity to strengthen and improve risk control in daily transactions to avoid adverse effects on the market.

It is reported that the China Securities Regulatory Commission is highly concerned about some issues reported by investors recently, such as the technical differences among market participants, and quantitative trading is a manifestation.

Market participants said that in recent years, quantitative trading has become an important trading method in the market. From a practical perspective, the market impact of quantitative trading has two sides. On the one hand, it helps to increase market activity and improve transaction efficiency. But on the other hand, entities that use quantitative trading, especially high-frequency trading, have obvious technology, information and speed advantages over small and medium-sized investors. At some points, there are problems such as strategic convergence and transaction resonance, which increase market volatility. Therefore, mature overseas markets generally implement strict supervision on high-frequency trading.

It is reported that recently, the exchange has punished individual quantitative private equity institutions for abnormal trading behavior in accordance with regulations, which is generally recognized by the market.

The Paper reporter learned from the regulatory authorities that next, the China Securities Regulatory Commission will take maintaining market fairness as the starting point and goal, adhere to the rule orientation, improve the quantitative transaction supervision system arrangements, focus on high-frequency trading, strengthen supervision from the aspects of data use, transaction reporting, abnormal transaction monitoring, etc., seek advantages and avoid disadvantages, and standardize development. At the same time, we must resolutely crack down on abnormal transactions and violations of laws and regulations, and effectively maintain the normal trading order of the market.

On March 4, according to news from the Shanghai and Shenzhen Stock Exchanges, the Shanghai and Shenzhen Stock Exchanges recently jointly held trading compliance training for quantitative private equity institutions to help quantitative private equity institutions understand quantitative trading regulatory ideas and work requirements in a timely and accurate manner, effectively improve the level of compliance transactions, and prevent quantitative trading risks.

This is another recent statement from the Shanghai and Shenzhen Stock Exchanges regarding quantitative trading. Previously, on February 20, the Shanghai and Shenzhen Stock Exchanges announced the smooth implementation of the quantitative transaction reporting system. On the same day, they also issued fines for abnormal trading behavior of quantitative giants.

Improve the level of compliance transactions of quantitative private equity institutions

It is reported that the heads and business backbones of 28 leading quantitative private equity institutions participated in the transaction compliance training for quantitative private equity institutions jointly organized by the Shanghai and Shenzhen Stock Exchanges.

In this training, the Shanghai and Shenzhen Stock Exchanges reported typical cases of abnormal quantitative trading transactions, introduced the general idea of ​​​​quantitative trading supervision, and clearly required quantitative private equity institutions to strengthen internal risk control management, prevent situations that affect the security of the stock exchange system or normal trading order during the transaction process, effectively standardize quantitative trading behaviors, implement compliance trading requirements, and ensure the stable operation of the market.

Both the Shanghai and Shenzhen exchanges stated that in the next step, they will adhere to investor-oriented and maintain fairness as the starting point and end point of their work. In accordance with the unified deployment of the China Securities Regulatory Commission, they will accelerate the establishment and improvement of quantitative trading supervision arrangements, further expand the scope of quantitative trading compliance training, standardize quantitative trading behavior, maintain the normal trading order of the market, and protect the legitimate rights and interests of investors.

Issuing "fines" for abnormal trading behavior of quantitative giants

Since the beginning of this year, the Shanghai and Shenzhen Stock Exchanges have strengthened the supervision of quantitative trading, reacting quickly and striking hard against abnormal transactions and irregularities in quantitative trading that affect the normal order of the market and damage the legitimate rights and interests of investors.

On February 20, in response to the abnormal trading behavior of quantitative private equity giant Ningbo Lingjun Investment Management Partnership (Limited Partnership) (hereinafter referred to as Ningbo Lingjun), the Shanghai and Shenzhen stock exchanges also issued "fines": restricting transactions and initiating public condemnation procedures.

The Shanghai and Shenzhen Stock Exchanges discovered during transaction monitoring that at the opening of the first trading day of the Year of the Dragon, multiple products managed by Ningbo Lingjun sold a large number of stocks. In one minute, a total of more than 2.5 billion yuan of stocks were sold in the Shanghai and Shenzhen stock exchanges, during which the stock index fell rapidly.

Specifically, on the Shanghai stock market, from 9:30:00 to 9:31:00 on February 19, multiple products managed by Ningbo Lingjun sold a large number of stocks on the Shanghai stock market, totaling 1.195 billion yuan, accounting for a high proportion of the market turnover during the period. During the period, the Shanghai Composite Index fell from 2886.59 points to 2868.07 points, a decrease of 0.65%. In the Shenzhen Stock Exchange, from 9:30:00 to 9:30:42 on February 19, multiple securities accounts under Ningbo Lingjun automatically generated trading instructions through computer programs, placed a large number of orders in a short period of time, and sold a total of 1.372 billion yuan of stocks in the Shenzhen Stock Exchange. Within one minute after the opening of the market that day, the Shenzhen Stock Exchange Component Index fell rapidly from 8957 points to around 8875 points.

The Shanghai and Shenzhen Stock Exchanges believe that the above-mentioned behavior of Ningbo Lingjun seriously affected the normal trading order and constituted abnormal trading behavior. The Shanghai and Shenzhen Stock Exchanges have decided to continuously implement regulatory measures to suspend investor account transactions for related products managed by Ningbo Lingjun from February 20, 2024 to February 22, 2024, that is, to suspend all stock transactions of relevant product accounts listed and traded on the Shanghai and Shenzhen Stock Exchanges during the above period, and at the same time initiate disciplinary procedures to publicly condemn Ningbo Lingjun.

The Shanghai and Shenzhen Stock Exchanges stated at the time that they would follow the unified deployment of the China Securities Regulatory Commission, adhere to the main responsibilities and main businesses of supervision, continue to strengthen trading supervision, and always maintain a strict tone and a high-pressure posture of "zero tolerance" for violations that affect the normal trading order of the market and damage the legitimate rights and interests of investors, respond quickly and strike hard. At the same time, investors are reminded to participate in transactions in accordance with laws and regulations and jointly maintain the normal trading order of the market.

Strengthen monitoring and analysis of quantitative trading, especially high-frequency trading

In recent years, with the widespread use of new information technology, quantitative trading has become an important trading method. Quantitative trading helps provide liquidity to the market and facilitates price discovery. However, quantitative trading, especially high-frequency trading, has obvious technical, information and speed advantages over small and medium-sized investors. At some points, there are also problems such as strategic convergence and trading resonance, which increase market volatility. Judging from international experience, overseas markets generally implement stricter supervision on quantitative transactions, especially high-frequency transactions, to prevent negative impacts on market order.

On September 1, 2023, the Shanghai and Shenzhen Stock Exchanges issued the "Notice on Matters Concerning the Reporting of Stock Programmed Trading" and the "Notice on Matters Concerning Strengthening the Management of Programmed Trading", establishing a special reporting system and corresponding regulatory arrangements for quantitative trading, which will be officially implemented on October 9, 2023. On February 20, both the Shanghai and Shenzhen Stock Exchanges announced that the above-mentioned systems have been implemented smoothly, existing investors have completed reporting work as scheduled, and incremental investors have implemented the "report first, then trade" rule. The quality of reports from all parties generally meets the requirements, laying the foundation for further strengthening and improving quantitative trading supervision.

The Shanghai and Shenzhen Stock Exchanges stated that they will continue to strengthen the monitoring and analysis of quantitative trading, especially high-frequency trading, based on reporting information, and dynamically evaluate and improve the reporting system.

The Shanghai and Shenzhen Stock Exchanges also stated that in the next step, they will adhere to the investor-oriented approach, take the maintenance of fairness as the starting point and end point of their work, learn from international regulatory practices, seek advantages and avoid disadvantages, and establish and improve quantitative trading supervision arrangements, including strictly implementing the reporting system and clarifying "report first, deliver later". "Easy" access arrangements; strengthen the authorization management of quantitative trading market conditions, improve the differentiated charging mechanism; improve the monitoring and monitoring standards for abnormal transactions, strengthen the supervision of abnormal transactions and abnormal order withdrawals; strengthen the monitoring and regulation of leveraged quantitative products, and strengthen the joint supervision of futures and spot.

At the same time, the Shanghai and Shenzhen Stock Exchanges will further strengthen the customer management responsibilities of securities companies, improve the self-regulatory management cooperation mechanism with the Securities Industry Association and the Fund Industry Association, and strengthen the transaction supervision of quantitative private equity and other institutions.

In addition, the Shanghai and Shenzhen Stock Exchanges will also strengthen communication with the Hong Kong Stock Exchange, clarify the reporting arrangements for northbound investors in the Shanghai-Shenzhen-Hong Kong Stock Connect, and include quantitative transactions by northbound investors in the reporting scope in accordance with the principle of consistency between domestic and foreign investors. For abnormal transactions that affect market order, the Shanghai and Shenzhen Stock Exchanges will resolutely take self-regulatory management measures, and those suspected of violating laws and regulations and serious circumstances will be reported to the China Securities Regulatory Commission for investigation and punishment.

Column Editor: Qin Hong

On February 20, according to the Shanghai and Shenzhen Stock Exchange websites, the quantitative transaction reporting system was smoothly implemented. In the next stage, the Shanghai and Shenzhen Stock Exchanges will take comprehensive measures from the institutional end, access end, trading end, information end, and institutional end to continue to strengthen the monitoring and analysis of quantitative transactions, especially high-frequency transactions, and include the quantitative transactions of northbound investors in the reporting scope in accordance with the principle of consistency between domestic and foreign investors.

The reporter learned that this is the first time that the Shanghai and Shenzhen Stock Exchanges have launched a series of regulatory measures focused on quantitative trading, clarifying the regulatory attitude and reflecting the determination of the regulatory authorities to strengthen the supervision of quantitative trading and maintain market stability. In the future, relevant quantitative trading supervision measures will be matured and launched, and communication with various investors in the market will be fully strengthened to grasp the pace and intensity of work, standardize quantitative trading, and maintain the stable operation of the market.

On that day, the Shanghai and Shenzhen Stock Exchanges issued a "penalty" for abnormal transactions of Ningbo Lingjun Investment Management Partnership (Limited Partnership) (hereinafter referred to as "Ningbo Lingjun"), restricted trading and initiated public condemnation procedures for Ningbo Lingjun. Industry insiders believe that supervision has "tears with thorns" and is intended to promote standardization and guide quantitative development. Regulatory authorities will respond quickly and strike hard at illegal activities that affect the normal trading order of the market and damage the legitimate rights and interests of investors.

A series of measures highlight investor-oriented

According to the website of the Shanghai and Shenzhen Stock Exchanges, quantitative trading regulatory measures include strictly implementing the reporting system and clarifying the access arrangements of "reporting first, trading later"; strengthening the authorization management of quantitative trading market conditions, and improving the differentiated charging mechanism; improving abnormal transaction monitoring and monitoring standards, strengthening the supervision of abnormal transactions and abnormal order cancellations; strengthening the monitoring and regulation of leveraged quantitative products, and strengthening futures and spot linkage supervision.

According to market analysts, the policies introduced this time are highly targeted and emphasize investor-oriented. For example, the requirement to "report first, then trade" will help to further accurately identify quantitative transactions; in view of the information advantages of quantitative transactions, clearly strengthen market authorization management; in view of recent quantitative transactions in small market capitalization stocks, clearly strengthen the monitoring and regulation of leveraged products to prevent stampedes in a short period of time. Including the self-regulatory management measures taken against Ningbo Lingjun this time, it is a reflection of the regulatory authorities’ strengthening supervision of abnormal trading behaviors.

"In the early stage, the regulatory authorities established a quantitative transaction reporting system. In accordance with the requirements, we have completed the reporting of existing customers, established a customer transaction monitoring system, and organized and mobilized relevant customers to report." A relevant person from Huatai Securities said that in the future, the company will continue to dynamically follow up on new additions, changes, etc., strictly implement the reporting system, and strengthen the detection of abnormal trading behavior.

The Shanghai and Shenzhen Stock Exchanges have also proposed specific measures from the institutional side, including further consolidating the customer management responsibilities of securities companies, improving the self-regulatory management cooperation mechanism with the Securities Association and the Fund Industry Association, and strengthening the transaction supervision of quantitative private equity and other institutions; strengthening communication with the Hong Kong Stock Exchange, in accordance with the principle of consistency between domestic and foreign capital, clarifying the reporting arrangements for northbound investors in the Shanghai-Shenzhen-Hong Kong Stock Connect, and including quantitative transactions by northbound investors within the reporting scope.

He Wenqi, chairman of Shenzhen Chengqi, said that the measures introduced this time will help reduce the impact of illegal quantitative transactions on the market and maintain the stability and fairness of transactions. The quantitative trading reporting system has been implemented for nearly half a year. This quantitative trading regulatory measure emphasizes the supervision of frequent orders and withdrawals, strengthens the monitoring of leveraged products, and clarifies the principles of northbound quantitative trading reporting, releasing a signal for supervision to further standardize quantitative trading.

The Shanghai and Shenzhen Stock Exchanges also stated that in the next step, they will adhere to the investor-oriented approach, take the maintenance of fairness as the starting point and end point of their work, learn from international regulatory practices, seek advantages and avoid disadvantages, and establish and improve quantitative trading regulatory arrangements. For abnormal transactions that affect market order, the Shanghai and Shenzhen Stock Exchanges will resolutely take self-regulatory management measures, and those suspected of violating laws and regulations and serious circumstances will be reported to the China Securities Regulatory Commission for investigation and punishment.

Mature one, launch one

For the first time, the Shanghai and Shenzhen Stock Exchanges have launched a policy "combination punch" from the institutional end, access end, trading end, information end, institutional end, etc. to further strengthen the pertinence and accuracy of quantitative trading supervision.

A relevant person from the Market Supervision Department of the China Securities Regulatory Commission told reporters that the China Securities Regulatory Commission has always paid attention to the development and supervision of quantitative trading. In recent years, it has successively promoted many tasks, including bringing quantitative trading into the scope of securities laws, establishing a data collection mechanism for leading quantitative institutions, strengthening quantitative trading monitoring and analysis, establishing a programmed transaction reporting system, strengthening private placement and securities lending supervision, etc. The "combination" of quantitative trading supervision launched this time is strong, strengthening supervision from multiple dimensions, and basically covering the main aspects of quantitative trading business operations.

"The series of quantitative trading supervision measures introduced in the next stage will be mature one by one and launched one by one, and we will fully strengthen communication with various investors in the market, grasp the pace and intensity of work, promote the standardized and healthy development of quantitative trading, and maintain the stable operation of the market." The above-mentioned person said.

Relevant people from Huatai Securities said that the relevant regulatory measures this time proposed a series of arrangements from various aspects such as access reporting mechanism, regulatory coverage, trading behavior and supporting systems, focusing on the programmed transaction reporting management system that has been implemented in the early stage, reflecting the "thorny" supervision, and further eliminating regulatory gaps.

Quantitative trading supervision emphasizes seeking advantages and avoiding disadvantages

There is currently a lot of market discussion about quantitative regulation. Many opinions believe that quantitative trading started late, but developed rapidly and had a greater impact on the market.

"The impact of quantitative trading on the market must be viewed dialectically." Relevant people from the Shanghai and Shenzhen exchanges said that on the one hand, quantitative trading is usually operated with full or high positions, which provides more liquidity to the market and helps promote price discovery. On the other hand, quantitative trading, especially high-frequency trading, has characteristics such as fast transaction speed, strong processing power, and the use of artificial intelligence. It has strong technical advantages, information advantages, and trading advantages over the majority of investors. In addition, some micro-cap trading behaviors have convergence in strategies, transactions, and even trading hours, which further amplifies the fluctuations of individual stocks, thereby causing market resonance.

A relevant person from the Market Supervision Department of the China Securities Regulatory Commission told a reporter from the Shanghai Stock Exchange that the Shanghai and Shenzhen Stock Exchanges have comprehensively implemented policies to supervise quantitative trading, not to kill quantitative trading with one stick, nor to ban quantitative trading. Instead, during the daily supervision process, it has been found that there are more quantitative transactions, the frequency of transactions, the frequency of placing and canceling orders is too high, there are phenomena such as excessive use of information advantages, exacerbating information asymmetry, etc., and the unfairness brought to the market has become increasingly obvious.

"Considering the current market situation of 200 million investors, and the risk of increasing market volatility in quantitative high-frequency trading under a specific market environment, it is necessary to take advantage of the situation to promote its standardized development and make it more investor-oriented." said the person above.

Focus on high-frequency trading, in line with international practice

A relevant person from the Market Supervision Department of the China Securities Regulatory Commission said that the focus of this quantitative trading supervision is on high-frequency trading. Judging from international experience, overseas markets generally implement stricter supervision on quantitative transactions, especially high-frequency transactions, to prevent negative impacts on market order.

For example, Germany, Japan, etc. have centralized regulations on quantitative trading in the form of written laws and implement access registration management for high-frequency traders. Germany stipulates the definition and characteristics of algorithmic trading and high-frequency trading, exchange fees, transaction monitoring indicators, system requirements, etc.; Japan has formulated and issued regulatory guidelines specifically for the supervision of high-frequency trading actors.

Markets such as the United States limit the speed at which high-frequency traders can obtain trading information, reduce information asymmetry, and ensure optimal execution of investor orders. At the same time, they clearly prohibit any market participant from participating in, specifying, or intending to conduct destructive trading behaviors, including "spoofing" and other market manipulation behaviors that have emerged with the rise of high-frequency trading.

Many market participants have also reported that the quantitative transaction reporting system established in the early stage imposes additional reporting requirements on high-frequency transactions, so as not to affect the security of the exchange system and normal trading order. This is also in line with internationally accepted practices.

The quantitative transaction reporting system was implemented smoothly

On September 1 last year, the Shanghai and Shenzhen Stock Exchanges issued the "Notice on Matters Concerning the Reporting of Stock Programmed Trading" and the "Notice on Matters Concerning Strengthening the Management of Programmed Trading", establishing a special reporting system and corresponding regulatory arrangements for quantitative trading, which will be officially implemented on October 9, 2023. At present, the above-mentioned system has been implemented smoothly.

The reporter learned from the Market Supervision Department of the China Securities Regulatory Commission that at present, existing investors have achieved "repayment of all dues", and incremental investors "report first, then trade". The quality of reports from all parties generally meets the requirements, laying the foundation for further strengthening and improving quantitative trading supervision.

It is reported that the content of the quantitative trading report is very detailed, including basic account information, account fund information, transaction information, trading software information and other major categories. There are also specific requirements under the major categories. For example, the account fund information requires filling in the account fund size, fund source, and source proportion. For leveraged funds, the leveraged fund source and leverage ratio need to be filled in. The transaction information requires filling in the transaction type, whether it is a quantitative transaction, the main strategy type and overview, auxiliary strategies and overview, futures market account name and code, trading order execution method and overview, the highest account declaration rate, the highest number of declarations in a single day, etc.

A relevant person from the Market Supervision Department of the China Securities Regulatory Commission said that unreported investors cannot conduct programmed transactions, which is equivalent to allowing investors to "driving with a license" in the first place, providing institutional conditions for timely discovery of violations and real-time monitoring.

Editor: Tao Jiyan | Reviewer: Li Zhen | Supervisor: Wan Junwei

The Shanghai Composite Index has been positive for five consecutive times, the market liquidity crisis has been resolved, and Lingjun was punished with a "boomerang", but quantitative trading has once again been pushed into the spotlight of public opinion.

After experiencing a sharp retracement of net worth and a series of pressures from customer redemptions, micro-cap stocks rose sharply for two days. Unexpectedly, the 24 hours before and after the quantitative private equity giant Lingjun was fined was the real "darkest moment" of quantification.

The resurgence of rumors, the announcement of Lingjun’s punishment, and the late-night apology have triggered a huge discussion in the entire industry about “why we have come to this point” and “where we will go from here” in quantification. Reporters from the Financial Associated Press have followed up on quantification for a long time and interviewed many institutions. They reviewed the 24 hours of quantification and the three major doubts that still exist in the industry.

Where does quantification go from here? Three major questions in the industry

Following Lingjun’s punishment, it was reported on the Internet that a quantitative private equity person said that “China’s stock market quantitative funds have closed down.” Such remarks were immediately denied by the parties involved.

What is unavoidable is that after the fermentation of news events, the great discussion about quantification has once again begun: How did the industry review the unprecedented tragedy of quantification? Investors asked, "Can I still invest in quantitative trading after a sharp retracement?" Some people once again mentioned the 828 incident in 2023 and reiterated the quantitative selling.

Some asset managers also believe that quantitative supervision needs to put the establishment of capital gains tax on short-term trading on the agenda.

Focusing on this, reporters from the Financial Associated Press interviewed industry insiders and learned that the current industry still has the following three major questions that need to be answered:

First of all, how to control the size of orders when placing quantitative trading orders?

Previously, the new regulations on programmatic trading clarified that high-frequency trading is the focus of supervision: that is, if the maximum declaration rate reaches more than 300 transactions per second or the maximum number of declarations in a single day reaches more than 20,000 transactions, the transaction can adjust the abnormal transaction identification standards according to the situation. In the announcement of the punishment of Lingjun by the Shanghai and Shenzhen Stock Exchanges, the reason was that "a large number of orders were concentrated in a short period of time, which accounted for a high proportion of the market turnover during the period, triggering a rapid decline in the index and seriously affecting the trading order."

Quantitative private equity said that even if it is not high-frequency trading, there is a lot of quantitative daily rolling trading frequency. Generally, it is sold at the opening and the funds are withdrawn before buying. From the current regulatory direction, in addition to avoiding high-frequency trading, it is also necessary to consider whether it will affect the index performance.

Secondly, will quantification “stop”? How to balance benefits and risks?

From the perspective of the industry, the risks of quantitative private equity are not without signs, but most people choose to run blindly.

A certain quantitative private equity said that the company adjusted its strategy last year because it realized that the CSI 500 was very risky and not cost-effective. However, the market enthusiasm concealed that the index had no excess risk. Looking at the excess and returns brought by the risk, how to balance it?

The above-mentioned people said that at that time, the risks had not yet emerged, and not doing this part of the excess would bring about underperformance and investor complaints. Today, if you review the market, you will find that rationally facing the excess of 300, 500, and 1,000, accepting the attenuation of alpha is an objective law. Trying to use opportunistic tricks such as iteration to chase false excess will ultimately be short-lived, and the worse result will be backlash.

However, in the face of huge temptation, how many institutions in the market can predict the risks? Dare to make adjustments? In most cases, extreme risks come and it is impossible to escape unscathed.

Third, how big is the current scale of DMA? How much money has 4 times leverage leveraged in the market?

It is undeniable that some quantitative private equity companies have criticized the restrictions on DMA trading before the holidays, and some institutions have blamed this for the retracement of net worth. In fact, in reviewing the sharp decline in micro-cap stocks, how much impact will DMA's restricted trading have on the product? The industry is inconclusive.

Industry insiders said that the path to triggering the liquidity crisis of micro-cap stocks is very clear. It was triggered by Snowball’s knock-in, and Snowball hedged and sold futures. The bulls chose to wait and see because they were waiting for the risk to be released, which in turn triggered a widening of the discount, a domino effect, and quantitative neutral strategies to close positions and sell CSI 500 and CSI 1000 constituent stocks. Subsequently, regulatory measures such as securities lending accelerated the decline of small and micro stocks, and the liquidity crisis really began. High-leverage DMA positions were liquidated. The DMA was restricted from February 5 to February 8 of the same month, for a total of 4 days.

Judging from the decline in quantitative net worth, it started with the decline of the Wind micro-cap index in January this year, reaching its maximum retracement in the last week before the Spring Festival, with individual products falling by more than 20% in a single week. In the view of most observers, the selling restrictions have exacerbated the retracement of net worth, but the retracement cannot be entirely attributed to regulatory measures.

In addition, it is worth noting that regarding whether securities firms can restrict the selling of quantitative private placements, in fact, there is a clear explanation in the 2023 programmatic trading. In strengthening the front-end management of members (brokerages), the exchange proposed that if customers’ programmed transactions may affect the security of the trading system or the normal trading order, members (brokerages) can take measures such as rejecting their programmed trading entrustments and canceling relevant declarations.

From the last day before the Spring Festival to the present, small and micro-cap stocks have started to rebound. In four trading days, the Wind micro-cap stock index has increased by nearly 30%. While the micro-cap market is still worth looking forward to, what is the size of DMA? What potential risks does high leverage bring? It deserves industry attention.

Regarding the scale of DMA, the industry speculates that as of the end of last year, the stock scale may have reached 100 billion. Counting 4 times leverage, the market capital leveraged is about 400 billion to 500 billion.

How big is the impact on the market? An analysis by an organization estimates that there is a certain diminishing effect when the scale changes hands. From observation, the turnover rate of tens of billions of private equity can reach 200 times when it reaches 500 million, about 120 times when it reaches 4 billion, and the turnover rate of tens of billions of scale is about 30 to 40 times. From this, we also refer to the turnover rate of DMA. Returning to what the regulator mentioned, "there are also problems such as strategic convergence and transaction resonance at some points in time, which increase market fluctuations". There are also traces to follow.

Full review 24 hours before quantification

The first stage (February 20, 12:00-15:00): Storm is coming, rumors are flying everywhere

Beginning at noon on February 20, a link to a collection of rumors about quantitative private equity giants was spread on social platforms. The rumors were mixed with "the liquidation of hundreds of billions of quantitative products, a huge loss of 1.5 billion in self-operated products, a DMA debt of 6 billion, the company's bankruptcy and even jumping off the building." The main body of the rumors involves Huanfang Investment, Mingtun Investment, Jiukun Asset and other leading quantitative private equity institutions.

These rumors before the Spring Festival have once again spread in the form of a collection and intensified. A reporter from the Financial Associated Press verified with a number of quantitative private equity and third-party institutions that the micro-cap liquidity crisis has caused the net value of some products to retreat. It is true that some products have encountered greater redemption pressure and even been liquidated, but there is no "liquidation of hundreds of billions of products." Some companies bluntly said: "The above screenshots are rumors. There were rumors of bankruptcy and jumping off buildings before the Spring Festival. These extreme statements are not true." Some leading quantitative private equity companies also said that the company does not have DMA products, and there is no problem of owing huge amounts of money to brokers.

The second stage (15:00-24:00 on February 20): Punishment is implemented, supervision is quantitative and qualitative

There are still a lot of messages asking for confirmation, and regulatory penalties have pushed the discussion to a climax. It is worth noting that this is the first time a penalty decision has been implemented after the new regulations on programmed trading in September last year, and the target of punishment is Lingjun, a giant in quantitative private equity.

February 20, 17:03 pm: The Shenzhen Stock Exchange announced that the Shenzhen Stock Exchange discovered during its transaction monitoring that within 42 seconds from 9:30:00 to 9:30:42, multiple securities accounts owned by Lingjun Investment automatically generated trading instructions through computer programs, placed a large number of orders in a short period of time, and sold a total of 1.372 billion yuan in Shenzhen Stock Exchange stocks. During this period, the Shenzhen Stock Exchange Component Index fell rapidly, affecting the normal trading order. The Shenzhen Stock Exchange decided to suspend trading in Lingjun’s account for three days and initiate a public censure record disciplinary procedure.

At around 17:40, the Shanghai Stock Exchange also announced that because Lingjun sold a large number of Shanghai stocks totaling 1.195 billion yuan in one minute, it had suspended trading for three days and issued a public censure record.

At 19:05, the Shanghai and Shenzhen Stock Exchanges respectively announced the smooth implementation of the quantitative trading reporting system. This is also the first time since the new regulations on programmed trading that the supervision has issued an announcement with "quantitative trading" as the clear subject. The two exchanges have the same caliber and have given characterization to quantitative trading: While quantitative trading helps provide liquidity to the market and promote price discovery, quantitative trading, especially high-frequency trading, also has problems such as strategic convergence and trading resonance at some points in time, increasing market volatility.

Subsequently, the exchange stated that it will continue to strengthen the monitoring and analysis of quantitative trading, especially high-frequency trading, with six major measures.

First, strictly implement the reporting system and clarify the access arrangements of “report first, trade later”;

The second is to strengthen the authorization management of quantitative trading prices and improve the differentiated charging mechanism;

The third is to improve the monitoring and control standards for abnormal transactions and strengthen the supervision of abnormal transactions and abnormal order cancellations;

The fourth is to strengthen the monitoring and regulation of leveraged quantitative products and strengthen the joint supervision of futures and spots.

The fifth is to further consolidate the customer management responsibilities of securities companies, improve the self-regulatory management cooperation mechanism with the Securities Industry Association and the Fund Industry Association, and strengthen the transaction supervision of quantitative private equity and other institutions, etc.

Sixth, the exchange will strengthen communication with the Hong Kong Stock Exchange, clarify the reporting arrangements for northbound investors in Shanghai-Hong Kong Stock Connect in accordance with the principle of consistency between domestic and foreign investors, and include quantitative transactions by northbound investors within the reporting scope.

A number of quantitative private equity firms have also launched self-certifications and clarifications. At around 21:24 in the evening, media reported that the quantitative giant Huanfang denied the liquidation of its products and stated that the company had never done any DMA leverage transactions.

In the evening, the recent product operation instructions and apologies of quantitative private equity companies such as World Frontier Assets, Xuanxin Assets, and Longqi Fund were also reported one after another. Most of the quantitative four times said that they would strengthen risk control constraints and reduce risk exposure.

In addition, a leading quantitative private equity reporter told a reporter from the Financial Associated Press that he "changed his strategy overnight". The initial plan is to change the trading frequency in some specific time periods to reduce the frequency of triggering transactions.

The third stage (0:00-8:00 on February 21) Lingjun, the punished institution, apologized late at night

At 2:25 a.m. on February 21, Lingjun Investment issued an announcement on the exchange's trading restrictions, expressing "firm obedience", in-depth review, and apology to the investment.

Lingjun Investment stated in the announcement that the company will resolutely comply with the trading restrictions imposed by the Shanghai and Shenzhen Stock Exchanges. The company attaches great importance to the problems existing in product transactions and has conducted deep introspection and review internally.

The announcement also explained the transactions on the day of the penalty: On February 19, 2024, Lingjun’s management products had an overall net purchase of 187 million yuan throughout the day, but the trading volume was large within one minute of the opening of the day. The company sincerely apologizes for the negative impact caused.

The announcement also mentioned that Lingjun Investment, as a professional quantitative investment institution, is optimistic about and insists on being long in the Chinese stock market in the long term, and its stock positions have always been close to full. In the next step, the company will learn lessons deeply, study relevant laws, regulations and trading rules more seriously, effectively enhance compliance awareness, and by improving the trading model, strictly control the transaction progress, transaction constraints, and transaction rhythm to ensure smooth and balanced transactions throughout the transaction process, effectively maintain the normal market transaction order, and fully protect the legitimate rights and interests of investors.

The fourth stage (8:00-12:00 on February 21) The China Securities Regulatory Commission emphasizes that "one item will be matured and another item will be launched in the future" for quantitative supervision.

After the exchange took action, the China Securities Regulatory Commission also explained and emphasized quantitative supervision. According to multiple media reports, the Market Supervision Department of the China Securities Regulatory Commission stated that the China Securities Regulatory Commission has always paid attention to the development and supervision of quantitative trading. In recent years, it has successively promoted many tasks, including bringing quantitative trading into the scope of securities laws, establishing a data collection mechanism for leading quantitative institutions, strengthening quantitative trading monitoring and analysis, establishing a programmed transaction reporting system, strengthening private placement and securities lending supervision, etc.

The series of quantitative trading supervision measures introduced in the next stage will be matured one by one and launched one by one. We will fully strengthen communication with various investors in the market, grasp the pace and intensity of work, promote the standardized and healthy development of quantitative trading, and maintain the stable operation of the market.

“The focus of this quantitative trading supervision is on high-frequency trading.” The above-mentioned person further said that judging from international experience, overseas markets generally implement stricter supervision on quantitative trading, especially high-frequency trading, to prevent negative impacts on market order.

Germany, Japan, etc. have centralized regulations on quantitative trading in the form of written laws and implement access registration management for high-frequency traders. Germany stipulates the definition and characteristics of algorithmic trading and high-frequency trading, exchange fees, transaction monitoring indicators, system requirements, etc.; Japan has formulated and issued regulatory guidelines specifically for the supervision of high-frequency trading actors.

Markets such as the United States limit the speed at which high-frequency traders can obtain trading information, reduce information asymmetry, and ensure optimal execution of investor orders. At the same time, they clearly prohibit any market participant from participating in, specifying, or intending to conduct destructive trading behaviors, including "spoofing" and other market manipulation behaviors that have emerged with the rise of high-frequency trading.

Regarding the special reporting system for quantitative transactions currently implemented, supervision emphasizes that existing investors are currently "repaying all their dues" and incremental investors are "reporting first and then trading." Unreported investors cannot conduct programmed transactions, which is equivalent to allowing investors to "driving with a license" in the first place, providing institutional conditions for timely discovery of violations and real-time monitoring. (Reporter Yan Jun)

Trainee editor: Li Wenyu | Reviewer: Li Zhen | Supervisor: Wan Junwei

Reporting from Shanghai by reporter Hu Jinhua of our newspaper (chinatimes.net.cn)

A-shares have recently received frequent favorable policies, but under the market conditions where the index is suppressed as soon as it rises, domestic quantitative private equity institutions that have become an important trading force have been pushed to the forefront. Whether they are bad elements who "help the stock market rise and kill the fall" in the stock market, or are "good students" who increase the activity of stock market transactions, the market cannot agree. However, in the eyes of regulators, it is necessary to re-examine domestic programmed transactions.

On the evening of September 1, the China Securities Regulatory Commission guided the three major stock exchanges in Shanghai and Shenzhen to issue the "Notice on Matters Concerning the Reporting of Programmed Stock Trading" and the "Notice on Matters Concerning Strengthening the Management of Programmed Trading". In these two notices, the three major exchanges clearly stated that they will implement real-time monitoring of the securities trading behavior of program trading investors, and focus on monitoring four types of matters: First, abnormal trading behaviors that may affect securities trading prices, securities trading volume, or exchange system security as stipulated in business rules; The second is a transaction with a maximum filing rate of more than 300 orders per second, or a maximum number of orders in a single day of more than 20,000. Third, the trading prices or trading volumes of multiple securities are obviously abnormal, during which a large number of programmed transactions are involved. Fourth, other matters that the exchange considers need to be monitored.

After the above two notices were issued, many well-known quantitative private equity institutions in the market spoke out, pointing out that their proportion of ultra-high-frequency trading was small and controllable, and the notices would have little impact on the company's trading level.

"In the past week, quantitative investment and private equity quantitative institutions have suddenly become the focus of market attention. The reason is that the A-share market has adjusted sharply after jumping from the high opening on Monday, coupled with the recent purchase of a luxury house by a private equity boss. After the fermentation of the Internet media, many investors believe that the stock market decline is 'cutting leeks' by quantitative institutions. The introduction of the above notice is the first time that my country has formally established a programmed transaction reporting system and corresponding regulatory arrangements in the stock market, clearly stipulating that stock exchanges include possible impacts. Strengthen monitoring and control of key matters such as abnormal trading behavior that affects securities trading prices, securities trading volume, or exchange system security. The purpose is to incorporate programming into the legal supervision system, crack down on illegal transactions using programmed trading, and maintain a healthy market environment. At the same time, the latest requirements will also promote the development of standardized trading and help the quantitative investment industry move forward steadily." Xu Jiaying, general manager of Shanghai Qianfulai Asset Management Company, said in an interview with China Times.

However, some people in the industry are worried that once high-frequency programmatic trading withdraws from the market, the activity of A-shares may be even lower.

Quantitative private equity players have spoken out

In recent years, the scale of quantitative private equity institutions has expanded rapidly. A number of tens of billions or even hundreds of billions of quantitative private equity giants have emerged in Beijing, Shanghai, and Shenzhen. These institutions have also lived up to customer expectations. When A-shares did not have large-level market prices and the index only fluctuated within a narrow range, they created considerable returns for customers. Although some quantitative products have poor returns, they far outperformed the net worth financial management of last year and the year before. However, quantitative private equity's focus on high-frequency trading and fast-in and fast-out style has also attracted the attention of more investors and fundamentalists.

On September 4, He Bin (pseudonym), a tens-billion-level quantitative private equity investor in Shanghai, analyzed during an interview that exchanges have been closely monitoring abnormal quantitative trading behaviors. Therefore, this time the focus of attention is on transactions with a maximum filing rate of more than 300 transactions per second, or a maximum daily filing rate of more than 20,000 transactions. Assume that the average order cancellation rate of a quantitative product is 6%, the minimum transaction amount is 10,000 yuan, and there are 20,000 transactions in a single day, the transaction volume is approximately 200 million yuan. If the turnover rate is 20% bilaterally per day, only products with a scale of about 1 billion yuan will be monitored intensively. Therefore, quantitative products with extremely high turnover rates or large scale may be focused on and additionally report multiple aspects of information.

According to statistics from a reporter from China Times, after the notice was issued, a number of quantitative institutions, including Qianxiang Assets, Niankong Technology, Siyuan Quantification, Century Frontier, Wenbo Investment, etc., expressed their attitudes.

Qianxiang Asset stated that the company’s alpha strategy includes three types: high frequency, medium frequency and low frequency, and the strategy is relatively balanced. At present, the proportion of stocks exchanged by the company every day is about 20%, which does not belong to ultra-high-frequency trading. The total daily declaration volume of products with a scale of less than 500 million yuan in the Shanghai and Shenzhen stock markets is less than 20,000 times. Therefore, the relevant measures introduced this time will not have much impact on the practicality of the company's current strategy. Relevant measures are expected to have a greater impact on strategies such as high-frequency bottom positions T0 and high-frequency securities lending T0.

"At present, the latest regulatory requirements have little impact on the operation of the company's strategy itself. Moreover, there is about a month's interval between the release of the "Reporting Notice" and "Management Notice" from the release to the official implementation. Each company has sufficient time to make adjustments and adaptations at the transaction execution level." Jukuan Investment said.

After the issuance of the above two notices, Siyuan Quantitative Investment Director Wang Xiong said that the China Securities Regulatory Commission guided major stock exchanges to introduce a series of measures to strengthen the supervision of programmed trading, which means that programmed trading will be included in a reasonable and legal regulatory system, which will help to further improve market transparency, crack down on illegal and illegal transactions using programmed trading, and maintain a healthy market order and ecology. At the same time, the latest requirements will also promote the standardized development of programmatic trading and help the quantitative investment industry move forward steadily.

Qianfulai Asset Management stated that the company’s quantitative transactions of convertible bonds did not reach this level in terms of declaration speed and quantity. And before the release of these two documents, most of the quantitative interfaces that I came into contact with also set limits on the frequency of declarations and the number of declarations. As an asset management company that interfaces with them, the company's system is actually designed according to the descriptions in the documents from beginning to end, so the new regulations basically have no impact on the company's trading behavior.

"For a mature and orderly capital market, standardized program transactions are indispensable. Therefore, the inclusion of program transactions in the regulatory system is of great significance for improving the resilience and vitality of the capital market. At the same time, regular reporting helps regulators understand the market situation more clearly, thereby improving the foresight and effectiveness of the entire market risk response, which will benefit the development of quantitative investment in the long run." Wang Xiao, chairman of Niankong Technology, pointed out.

On September 5, relevant people from Century Frontier told a reporter from China Times that since September 2021, regulators and multiple quantitative institutions have had many active communications, and established an information registration and reporting mechanism. In the process, they gradually understood the essence of quantitative trading, and finally settled into the content of this release.

"Judging from the results, the supervision recognizes programmatic trading as an important trading method, and also recognizes the positive significance of programmatic trading in improving transaction efficiency and enhancing market liquidity. We are still waiting for the further release of specific details. Based on the information we have seen so far, the standards of 300 declarations per second and 20,000 declarations per day are loose enough, and only require more information for exceeding the situation. We judge that it will not have a negative impact on the product." The person said frankly.

"Wenbo Investment calculates based on existing algorithmic trading that there are basically no strategies for trading more than 300 transactions per second. Calculated based on an average transaction amount of 10,000 yuan and a transaction rate of 70%, 20,000 subscriptions, an annualized change of hands 50 times, and a single product with an upper limit of 700 million yuan or more will receive special attention; such as If the company changes hands 200 times, special attention will be paid to those with a single product scale of more than 500 million yuan. Based on the overall assessment, it will not have a negative impact on the current strategy. The standardized development of the industry will be beneficial to the healthy development of the entire quantitative industry," the relevant person in charge of Wenbo Investment told this reporter.

What is the future of quantitative trading?

Currently, how much of the daily trading volume of A-shares is quantitative trading has always attracted market attention.

The Private Equity Filing Monthly Report of the Asset Management Association shows that as of the end of 2022, the scale of private securities investment funds will be approximately 5.6 trillion yuan. Calculated based on a 15% ratio, the scale of quantitative/hedge strategy funds at the end of 2022 may be between 800 billion and 900 billion yuan.

According to research and communication data released by Shenwan Hongyuan Securities, the average daily turnover rate of large-scale quantitative private equity is between 10% and 20%. Based on an estimated daily average turnover rate of 15% (the turnover rate of small and medium-sized quantitative private equity is generally higher), the daily trading amount contributed by quantitative private equity can reach more than 120 billion yuan, accounting for 13% of the average daily trading amount of A-shares in 2022.

“Compared with U.S. stocks, the current absolute scale and relative transaction proportion of A-share quantitative private placements are low, but it is already a part that cannot be ignored in the transaction structure of the A-share market. However, the notice issued by the regulatory authorities predicts that three types of products may be affected: The first is private equity high-frequency self-operated trading; the second is a time-selected hedging strategy product, that is, a product that uses A-shares to open lower in the morning to do T-quantity if the position is not satisfied overnight; the third is a product that combines large-scale holding reduction and uses securities lending," Xu Jiaying told a reporter from China Times.

Xu Jiaying believes that China's quantitative trading is dominated by medium and low frequency. At present, the average turnover rate of my country's leading quantitative institutions is far from reaching the standards of high-frequency trading, and high-frequency quantification often has relatively small strategic capacity, which will not have a great impact on the overall stock market trading volume and liquidity.

It is worth noting that the management recently proposed to continue to increase and promote the issuance of ETF funds to introduce more long-term funds into the market. Quantitative private equity institutions seem to be acting in unison to prepare to be long in the market.

"Comparing domestic and overseas markets, the situation where funds make money but investors do not is often due to investors being accustomed to procyclical operations. Especially during periods when market performance is unsatisfactory and the index is at a relatively low point, many investors lack confidence. As far as the current A-share market is concerned, market valuations have basically met the requirements. The absolute bottom characteristics are not significantly different from the historical bottoms of previous rounds of A-shares. It should be an excellent time to go long on the index and configure a quantitative index increase strategy, especially a fundamental index increase strategy.” On September 5, Xu Zhongxiang, founder of Ruilian Jingchun, a well-known foreign quantitative private equity firm, expressed his opinion.

Wang Li, general manager of Niankong Investment, said that at this stage, the A-share policy bottom has appeared, and the market bottom has yet to be verified. But overall, when the policy is basically established, it should be a better time to deploy quantitative index products. In addition, quantitative index growth products are always fully operated, and the inflow of related incremental funds will make a positive contribution to the overall funding of the A-share market.

The relevant person in charge of Mengxi Investment pointed out that the current A-share market is at a low level for many years, and the downside risk is much smaller than when the market was at a high level. Therefore, the "potential beta upside" of the quantitative index growth strategy is larger. From an asset allocation perspective, now is a good time to invest in quantitative index growth strategies. In addition, quantitative strategies such as quantitative index growth strategies have the characteristics of high positions and will have a significant positive effect on stabilizing and assisting market capital.

"The sound development path of quantitative trading involves multiple key factors. The first is transparency and supervision. It is very important to improve the transparency of quantitative trading and ensure that regulatory agencies have sufficient supervisory powers. Regulators need to understand quantitative trading strategies, algorithms and trading processes to monitor market manipulation, malicious trading and systemic risks. Regulators should also constantly update regulations to adapt to the rapid development of quantitative trading technology; secondly, risk management, quantitative trading companies should develop strict risk management Risk management policies, including limiting trading leverage, setting risk exposure limits and implementing risk control processes, can help prevent potential huge losses and market shocks; finally, there is market liquidity. Quantitative trading usually provides market liquidity, but it may also withdraw from the market in extreme circumstances. In order to ensure the stability of the market, quantitative traders need to cooperate with market regulators and other traders to ensure that sufficient liquidity is provided when the market fluctuates violently." Xu Jiaying told this reporter.