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Hong Kong Fintech Company AQUMON Completes Series A++ Round of Funding

By Li Jing, China Venture

Magnum Research Global Limited (Magnum Research) has announced the completion of their Series A++ round of funding, which was led by Boha XingWang LP, an affiliate of BOC International Holdings Limited (BOCI). Existing backers, including the Alibaba Hong Kong Entrepreneurs Fund, also participated in the round. The round showcases the growing recognition that AI Investment Consultants are receiving from top Chinese investment companies. Magnum Research is a Fintech company that was formed through an incubation program run by the Hong Kong University of Science and Technology (HKUST); the startup is focused on the development of AQUMON, an intelligent investment engine. By integrating finance, algorithms, and technology while also targeting not just financial institutions but individuals from the local and overseas markets, Magnum Research is hoping to ride the wave of automating wealth and asset management via its AQUMON platform. The company has already acquired the Type 1 license (Dealing in Securities) and the Type 4 license (Advising on Securities) from the Hong Kong Securities Commission, and has also obtained the Registered Investment Advisors (RIA) license from the US Securities and Exchange Commission (SEC). They are committed to creating a transparent, stable, real-time, low-costing and revolutionary financial management experience that also adheres to the legal premise of compliance. AQUMON’s Intelligent AI Investment AI Engine relies on its powerful algorithmic strategizing capabilities and its fully closed-loop information technology (IT) system to effectively help financial institutions lower their costs by utilizing a long-term investment ideology; essentially, the engine can be used to stimulate inactive customers, upgrade automated financial management systems, and change growth models for businesses. This latest round of funding for the company has created a synergy between BOCI and Magnum Research: BOCI will provide strong financial support to the development of Magnum Research, and Magnum Research will proactively search for partnerships with both sides of AI investment businesses, therefore creating a win-win situation for all of the relevant parties. Mr. Wang Lixin, the Managing Director of BOCI Foreign Direct Investment (FDI), stated that, “AI technology has empowered financial institutions to show actual results. More and more financial institutions are now embracing AI, which in turn has unlocked the possibility of more in-depth collaborations between the finance industry and leading AI technology companies.” Also speaking on the round, Ms. Cindy Chow, Executive Director of the Alibaba Hong Kong Entrepreneurs Fund, said, “We are very pleased to be able to continue supporting Magnum Research’s development as a company, because they possess the ability to conduct in-depth research on AI, and have an innovative way of thinking. We are also happy to see more and more matured industries experimenting with new technology and innovations, because this will give the Hong Kong startup ecosystem a positive push in terms of its development.” Mr. Kelvin Lei, Chief Executive Officer (CEO) of Magnum Research said, “the combination of algorithms and IT has generated a tremendous boost of energy and has also started a revolutionary wave in the financial management and asset management industries. However, while these industries have huge volume and a rapid growth rate in Asia, there are still obvious weaknesses, such as expensive fees, a lack of transparency, biased local preferences, and a lack of standardized services. However, just reducing some costs or increasing the order efficiency will be enough to create an impact. Magnum Research has the core ability of creating AI algorithms and a complete trading system, which will allow investors to penetrate the middle layers and instantly have access to the assets, giving them a full grasp of the available information.We are beyond honored to have received recognition for our work from a progressive institution such as BOCI, and this funding is definitely a significant milestone for Magnum Research. We are also thankful for the continued funding and support from the Alibaba Hong Kong Entrepreneurs Fund. In Hong Kong alone, the AI wealth management market is already worth US$200 – 300 B, and with that in mind, Magnum Research will work diligently towards achieving our goals for this market.” Co-founder of Magnum Research, Dr. Huang Yaodong, added, “Our company is committed to highlighting machine-learning, statistics, financial engineering, and other cutting-edge technologies as ideal investment fields. After three years of determined effort, our algorithm team has built a quantitative library of investment strategies that covers global and strategic asset allocation, statistical and index arbitrage, as well as high-frequency trading. At present, many entities including fund management companies are already using our quantitative strategies, which are stable and performing. In terms of research and development (R&D), our company will be dedicating more resources and carrying out more in-depth collaborations with professors from the elite laboratories of HKUST, in order to grow and maintain our lead in the field of quantitative investment strategies.Kelvin and I had this vision of utilizing the Internet and AI technology to revolutionize the financial management experience and to give the masses access to quality investment strategies. With continuous funding from institutions such as BOCI and Alibaba, we are confident that we will achieve that vision a lot faster than we previously expected. Since Magnum Research began building its team in 2015, to when we were officially established in 2016, we have closed multiple rounds of funding, including this A++ round, which totals up to an equivalent of over RMB100 M in financing to date; this amount has made us the current leading AI wealth management startup in Asia. We have now expanded the team to 50 people, including top AI talents as well as a group of doctors and experts in quantitative methods. We have also set up offices in Hong Kong, Shenzen, and Singapore.” After 3 years of development, Magnum Research has successfully expanded their business from Hong Kong to Mainland China and across some areas of Southeast Asia, emerging in various financial markets. Thus far, Magnum Research has managed to secure letters of intent for cooperation from over 30 financial institutions both locally and abroad, including large banks, brokerage firms, insurance and financial management companies, as well as other top financial entities. Typical examples include China Resources Bank of Zhuhai’s “Run AI Investment” initiative, and China Asset Management (HK)’s “AI China Alpha” strategy, both of which help to establish Magnum Research’s leading position in algorithms and IT R&D. Concurrently, their AQUMON engine, which targets individuals Hong Kong customers, has won a share of their loyalty, and Magnum Research will be leveraging on this advantage by launching a new smart service named “Q AI Investments”; the service will target individuals outside of Hong Kong, and the company is aiming for this new wealth management platform to be the most reliable in Asia, with the largest user base in the region.