China has unveiled Shangji, its first artificial intelligence model analyzing weather patterns' influence on financial markets, in a groundbreaking move to enhance climate-aware investment strategies. Developed jointly by Fudan University and the National Meteorological Information Centre, the tool aims to revolutionize risk assessment for businesses and investors.
The model processes global meteorological data and historical stock performance to forecast short-term returns for over 70% of A-share market equities. Validation tests show particular effectiveness in weather-sensitive sectors like renewable energy, agriculture, and construction, with back-tested strategies demonstrating consistent returns across multiple market cycles.
"This bridges meteorology and finance in unprecedented ways," said Zhao Yanxia, lead developer at the CMA's financial meteorology lab. "From optimizing solar farm investments to hedging against drought impacts, the applications are transformative."
Fudan University's Professor Li Hao highlighted cross-sector potential: "Banks can assess loan risks in coastal construction projects. Insurers can price climate policies more accurately. For quantitative funds, this adds a vital new data layer."
The research team plans to expand Shangji's capabilities to bond and futures markets by late 2026, with real-time updates ensuring relevance amid changing climate patterns and economic conditions.
