How Natural Language Processing (NLP) empowers the equity indexing – cooperation between Hang Seng Index and Wizpresso

Hang Seng Index (HSI) has joined hands with Wizpresso to utilize our Discovery platform for index formulation. With its natural language processing (NLP) SaaS solution, Wizpresso can streamline the research processes and identify potential constituents for thematic indexes. 

How does Equity Indexing work? 

As an essential indicator of the Hong Kong stock market, HSI has a rigorous requirement for data accuracy that involves massive manpower. The NLP solution, Wizpresso Discovery, targets the pain points of data crunching and transforms the research and index formulation process. NLP is the ability of a computer program to understand human language as it is spoken and written. The adoption of the AI-powered search engine can bring potential benefits, including the ability to : 

  1. Accelerate new index creation by identifying relevant constituents with customizable parameters; 
  1. Improve the efficiency of periodic index review cycles and reduce manual efforts; 
  1. Automate securities review upon index creation with full coverage of the selected index universe.  

Wizpresso’s technology can comprehend documents like how professionals would analyze paragraphs, tables, and charts to generate insights. Its AI can screen companies by themes and score them according to the data extracted from company filings, automating and facilitating the periodic review of various indexes. Furthermore, using cutting-edge deep learning technologies, securities reviews can be automated at index creation time. For example, using transformer-based machine learning techniques, the AI can instantly identify high-impact, credit-relevant events from millions of documents that can be summarized in a dashboard. HSI has used the solution to discover information hidden in texts that can be missed, extract critical information from a wide range of unstructured documents, and improve the efficiency of creating a new index.  

HSI also applies the technology in other areas. For example, it can process unstructured textual data, such as extracting financial information from PDF tables, classifying content, tracking changes, etc. At the same time, it automatically maintains the industry classification of 8,000 public companies across Hong Kong and Greater China and supports multilingual search across a wide range of document layouts. Wizpresso covers markets across all continents, including Greater China, Singapore, Australia, Japan, Korea, the UK, the US, and more. By marrying technology with industry know-how, Hang Seng and Wizpresso strive to augment capital markets workflows and enable further success in the world’s top financial center. 

We have seen great potential from the combination of finance and technology. Using Discovery in equity indexing is one of the best cases of bringing energy to traditional banking and helping to drive innovation. Hang Seng has always adhered to the customer-centric concept and is willing to adopt new technologies for new business opportunities. The unique situation brought by the blessing of FinTech allows us to hand-in-hand create a better future.  

Learn more about Discovery