How We Invest

Investment Strategies

Today’s Shanghai stock exchange began operations in December 1990. In just over 30 years the country’s equity market has become the second largest in the world. This rapid capital growth has created a unique and unprecedented investment opportunity for those who are dedicated to understanding the participants, factors and market-structure that make China unlike any other capital market in the world.

Mingshi has been dedicated to building proprietary models specific for China for over a decade. Mingshi runs strategies in Equities, Derivatives and Commodities. Our dedication to unlocking the potential of China has earned the firm a reputation of being one of the most trusted investment advisors in the industry.

EQUITIES
Market Neutral
  • Mingshi uses its proprietary signal research to construct market-neutral strategies designed to perform in all market conditions.
  • These strategies target zero-net and low correlation with China and global equity beta.
  • We use a combination of globally recognised financial academic research and the latest in artificial intelligence to construct liquid and diversified portfolios, optimized for absolute returns in the China A-share market.
Index Enhancement
  • China is the second largest equity market in the world by USD turnover.
  • The 2018 China A-share inclusion into the MSCI group of indices and its large liquidity represent a growing opportunity for global managers interested in Asia-beta.
  • Mingshi runs index-benchmarked long-only strategies built on our quantitative research and risk management framework.
DERIVATIVES
  • China’s derivative market is still in its infancy.
  • Mingshi continues to pioneer China’s multi-strategy universe by building quantitative strategies across multiple asset classes.
CTA
  • CTA strategies have been active in China’s equity market since the launch of the CSI300 index future in April 2010 on the CFFEX.
  • Mingshi’s CTA strategies have been running since 2019 and represent a growing area of quantitative investment opportunity in China.
Risk Management

Mingshi’s risk management framework represents one of the largest technical investments in the firm. It leads all aspects of Mingshi’s strategy and operational life cycle.

In portfolio construction, Mingshi’s risk management rules are hard coded into our portfolio creation algorithms and are continuously monitored systematically and by the firm’s dedicated risk professionals. Strategy risk is built on two fundamental principals 1) Diversification and 2) Liquidity. Mingshi avoids concentration risk in any particular single-stock, factor or sector. In addition, it maintains strict liquidity limits for all positions enabling our portfolios to react quickly to fast-moving market opportunities or risks.

Awards
Mingshi Awards 2019
  • WIND, Best Equity Fund Company (AUM over 5 billion RMB).
  • "Private Banking Cup of Bank of China", Best Asset Management Institution in Quantitative Strategies Group, 2019.
  • Simuwang, most Trusted Equity Fund Manager, 2019.
  • Suntime, most Popular Hedge Fund (three-year term) TOP10 in the list of China Equity Funds 2019.
  • Suntime, most Popular Hedge Funds (one-year term) in Neutral Market Group TOP10 in the list of China Equity Funds (the 14th), 2019.
  • GeShang Caifu, the 4th China Securities Private Placement Golden Camphor Award for the Best Alpha Equity Management Company, 2019.
  • STCN, the First Equity Contest TOP10 of Private Equity Fund Products in Relative Value Strategy Group.
Mingshi Awards 2018
  • The 10th China Private Equity Golden Bull Award, three-year term Golden Bull Equity Management Company ( Relative Value Strategy), 2018.
  • Simuwang, most Potential Equity Manager (Stock Strategy), 2018.
  • Suntime, most Popular Hedge Funds (one-year term) third place in the list of China Equity Funds ( the 13th), 2018.
  • Suntime, most Popular Hedge Funds (three-year term) TOP10 in the list of China Equity Funds (the 13th), 2018.
  • GeShang Caifu, the 3rd China Securities Private Placement Golden Camphor Award for the Best Alpha Equity Management Company, 2018.
  • Champion in the Compound Strategy Group of the Great Wisdom Private Equity Contest, 2018.
  • STCN, the First Equity Contest TOP10 of Private Equity Fund Products in Relative Value Strategy Group.
Mingshi Awards 2017
  • Suntime, most Popular Hedge Funds (one-year term) in the list of China Private Equity Funds (the 12th), 2017.