Despite a challenging May market, Goku model demonstrated resilience and outperformed expectations. Following the official issuance of the “Nine-Point Guidelines” in mid-May, the market experienced a sharp decline and disorderly switching, resulting in a narrower Alpha environment.

The situation continued until the beginning of June, when regulatory requested response from several listed companies regarding performance growth, resulting extreme panic and significant decline in performance during the first week of June. On June 6, 2024, the CRSC issued a timely corrective to the over-interpretation of the inquiry, then market recovered rapidly on the following day. The extreme volatility indicates that there are still numerous opportunities for Alpha in the less-effective market.

We believe regulatory measures promoting the development of entire quant industry in a compliant manner, and ultimately safeguarding the securities trading order and market fairness in the long term.