Beijing: 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.
According to Emirates News Agency, the model named 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, stated that the model, which uses global reanalysed meteorological data and historical stock trading data, is capable of forecasting 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.
