Futu Unveils DeepSeek-Enhanced Tools for Investors
Introduction to AI in Finance
In March 2025, Futu Securities International, the largest online broker in Hong Kong, launched a chatbot powered by DeepSeek. This AI-driven tool provides valuable insights for investors, particularly regarding the conglomerate CK Hutchison’s attempts to sell strategic ports in Panama and elsewhere. The bot’s primary advice varies for different types of investors, highlighting key market conditions for trading decisions.
Investment Strategies from the Chatbot
Short-Term vs. Long-Term Trading Advice
For Short-Term Traders:
- The chatbot prompts traders to be cautious and await stability in stock prices above the five-day moving average.
- For Long-Term Traders:
- It recommends gradual investment through "batches" because CK Hutchison currently has low valuation metrics, such as:
- Price-to-earnings ratio: 9.96
- Price-to-book ratio: 0.32
- High dividend yield adds an extra layer of safety for long-term investments.
- It recommends gradual investment through "batches" because CK Hutchison currently has low valuation metrics, such as:
Monitoring Financial Health
The AI stresses the importance of keeping an eye on CK Hutchison’s debt ratio, which is crucial for evaluating the company’s overall financial stability.
The Role of AI in Brokerage Firms
Futu is part of a broader trend among Chinese brokerages leveraging AI technologies, notably DeepSeek, to enhance their services. Other firms, such as Tiger Brokers, have also integrated this technology in recent months.
How AI Changes Brokerage Operations
Research and Risk Management:
- AI tools transform how brokerages conduct market research, manage risks, and make investment decisions.
- Attracting Retail Investors:
- According to Kenny Tang, chairman of the Hong Kong Institute of Financial Analysts, AI enables retail investors—who may lack the time and expertise for detailed analyses—to benefit from simplified evaluation tools.
Daily Market Insights
The Futubull AI chatbot utilizes up-to-date market data. This data source includes:
- Financial reports
- Research papers
- Online discussions from Futu’s investor community
- Stock quotes acquired from Nasdaq
In contrast, the public version of the DeepSeek R1 model is less current, being updated only until July 2024.
Features of the Futubull AI
Knowledgeable Personal Financial Assistant
Futu’s AI is designed to serve as a smart assistant for investors. Upcoming enhancements will include stock screening capabilities, allowing users to filter stocks based on criteria like market value and price-to-earnings ratio.
Algo Trading System
Futu’s Algo Trading system is tailored for advanced investors, allowing them to automate their trading strategies with relative ease. Users respond to a series of yes-or-no questions, leading them down paths based on their answers. This system helps investors test different strategies against real market data.
Options Trading Simplified
Investors often find constructing complex options strategies challenging. The updated options feature makes it easier to generate suitable strategies quickly by providing a basic stock outlook.
Data Privacy and AI Models
Futu prefers using DeepSeek AI models over general-purpose ones like those from OpenAI due to privacy concerns. Since using external models could involve sending user data to third-party platforms, the firm chose DeepSeek for its ability to fully host AI models on its systems.
Caution Advised
Even though AI tools can offer valuable insights, both Futu and financial analysts urge users to take the advice provided by these tools with caution. AI can produce incorrect information and should not be viewed as professional investment advice.
Clients are recommended to consider their personal circumstances when making investment choices, emphasizing the importance of human judgment alongside technological assistance.
Market Position and Development
Futu recently leased a prominent retail space in Hong Kong’s Causeway Bay for HK$1.2 million (approximately US$154,000) per month. This move signifies a strategic effort to differentiate itself amid growing online competition in the brokerage sector, demonstrating the firm’s commitment to combining traditional services with modern technological innovations.
By focusing on these advancements, Futu aims to enhance its offerings, better serve clients, and maintain its competitive edge in the evolving financial landscape.
