BEIJING, Jan 13 (WAM/APP): China has revealed its first artificial intelligence (AI) model designed to analyse the impact of weather patterns on financial markets, marking a novel step in climate-aware risk management, the China Meteorological Administration (CMA) has said.
The model Shangji, or Stock, was jointly developed by the Shanghai-based Fudan University and the National Meteorological Information Centre. Its core function is to assess how meteorological factors influence asset pricing, offering a new tool for investment decisions and financial risk assessment, the CMA was quoted as saying by Science and Technology Daily on Tuesday.
Zhao Yanxia, a lead developer of the model and Director of the CMA key open laboratory for financial meteorology, said the model, utilising global reanalysed meteorological data and historical stock trading data, is able to forecast short-term returns for the majority of stocks on China’s A-share market.
Validation tests indicate that the model is capable of accurately identifying industries highly sensitive to weather conditions, such as wind and solar power, traditional petrochemicals, construction and agriculture, thereby aligning with international standards.