This summer, Jiacheng Feng interned at Caitong Funds Co Ltd under the Quantitative Investment Department in Shanghai. The project manager and Jiacheng worked on a variety of problems to find a pattern of the volatility of the stock market. Before starting his internship, Jiacheng had to learn Excel VBA programming and Wind Financial Terminal so he could port all the relevant data and work with the necessary numbers. Jiacheng’s major project was related to the Log Periodic Power Law Model, a stock simulation model that is used to predict the inflection points of bubbles and anti-bubbles. Jiacheng wrote the entirety of the program under VBA, and added modifications such that it would be more accurate towards the Chinese Stock Market. He further adjusted the code such that inflection points for smaller intervals could be predicted.
“MIT-China taught me that working in a different country is really just a learning process,” Jiancheng says, “but not all that different than working in the US.” Jiacheng’s biggest problem was not knowing any financial terminology in Chinese which made research tough, and Jiacheng had to read slowly to fully understand the foreign text. Jiacheng explains, “Although this slowed down my work process, it allowed me to understand what I am doing much better.” Fortunately Jiacheng’s colleagues understood that he needed to include English terms to math/finance words that he am unfamiliar with when presenting his research results. Communications between colleagues was a never a problem in Jiacheng’s department.
In the US
“I think that working aboard allowed me to reach out to a new area which I would not have gotten if I stayed in the US,” Jiacheng explains. He learned specifically how the Chinese Stock Market works, however, more importantly, he got to witness how the Chinese Hedge Fund Operates (and the benefits and drawbacks of this operation). For himself, Jiacheng says he feels more confident in succeeding in the workforce in the future, and he knows that he wants learn more about Finance.