Exploring China
I recently went one on one with Allen Yan. Allen is the CEO of GTCOM Technology Corporation (GTCOM-US). GTCOM-US the sister company of GTCOM, an alternative data company offering US investors data and analysis from China to help inform investment decisions. GTCOM-US partnered with Bloomberg as the first APAC data provider on Bloomberg's alt data enterprise access point platform.
Adam: Thanks again for taking the time to share your advice. First things first, though, I am sure readers would love to learn more about you. How did you get here? What experiences, failures, setbacks or challenges have been most instrumental to your growth?
Allen: Adam, thank you for having me here. It is my great pleasure to talk with you.
Before establishing GTCOM Technology Corporation (GTCOM-US), I had been working within various companies on a range of projects within the international marketing and sales industry for over 10 years. Conducting international business was a great way for me to understand the international community better, as well as to learn to communicate with people from a variety of different cultural backgrounds.
In 2018, the HQ of GTCOM was planning to establish our U.S. branch which would focus on Fintech. I was sent to the U.S. alone, and within just 3 months I completed the registration of our U.S. company, decorated our new office and set up the team. As leaders, we sometimes have to learn to endure and enjoy loneliness, figure out solutions and make the best decisions for the team and company independently, . The opportunity to do that when establishing GTCOM-US has been instrumental to my growth.
Adam: Can you describe GTCOM-US’s process of obtaining, analyzing and synthesizing data? How do you ultimately obtain the insights of value to investors and leaders?
Allen: Firstly, the data we focus on is alternative data which differs to traditional market data. The volume and noise of it is much larger than traditional data and most of the alternative data is in an unstructured or semi-structured format – making it impossible to process, analyze and normalize manually. This must be done by utilizing advanced NLP and machine learning technologies. We have our own multilingual NLP algorithms which can process huge volumes of alternative data in more than 10 languages. Additionally, we have our own models which help investors and leaders extract alpha factor from immense volumes of data - such as our Volatility Index for China’s stock market, our Economy Activity Analysis, our Market Psychology model and others. Alternative data is extremely powerful when it comes to driving alpha in trading strategies, as the signals extracted from alternative data can help investors and leaders access unique deeper insights on their market research. Today, our solutions are used in the U.S financial market not only by the buy side but also by the sell side. We have even partnered with the consulting industry, working with clients such as the Boston Consulting Group.
Adam: What should investors and entrepreneurs understand about China and the future of China’s role in the global economy?
Allen: China is still a very hot investment market, and has been taking various steps to open its financial market up to foreign investors. These changes are making it easier for foreign investors to buy China’s stocks and bonds, and are allowing full foreign ownership of insurance, futures, and mutual fund companies – so there is a huge wealth of new opportunity. Additionally, China has recovered from the impact of the COVID-19 pandemic very wells so far. Besides playing the role of the world’s factory, China will continue to play an even more important role within the world of finance - it will bring big opportunities for global investors and entrepreneurs alike.
Adam: What do you believe are the most important things U.S. business and civic leaders should understand about China?
Allen: There are different perspectives to take into account in order to best understand China, what I want to emphasize is understanding China from the investment perspective.
China’s reform and “opening up” began in 1978 and created big opportunities for global companies within various industries, for example, the automobile and IT industry to mention a few. Today, China’s financial market is opening its doors to global investors providing a tremendous opportunity for investors worldwide.
Adam: What other key trends should we be aware of? What does your research tell you about the future of the U.S.-China relationship?
Allen: Approaches based on alternative data and machine learning will be used more and more in investment into China from investors in the U.S. - that is the key trend.
We believe that innovative technology and new forms of data will power the U.S. finance industry to make the most out of investment opportunities in China, and that China’s immense capital and its financial market will continue to draw in and connect more and more global investors.
Adam: What are your three best tips applicable to entrepreneurs, executives and civic leaders?
Allen:
Both work and family are important. Hard work is for a better life, and family is always the most important support for your work. Always try to keep a good balance between the two.
Taking the first step is key. Try not to think on it for too long as this will always slow you down. Thinking is necessary, but if you think too long and too much, you may miss the opportunity.
Constantly encountering obstacles and solving problems is the daily life of leaders. Stay positive and optimistic.
Adam: In your experience, what are the defining qualities of an effective leader? How can leaders and aspiring leaders take their leadership skills to the next level?
Allen: To me, good time management is a hugely important quality of an effective leader. So is creating the opportunity for yourself, and to work with outstanding people who you can learn from. When hiring, look for people who have strengths that you can learn from that don’t necessarily come naturally to you. I find this to be incredibly motivating and ultimately improves leadership.
Adam: What is the single best piece of advice you have ever received?
Allen: “Believe in the power of belief” is the best piece of advice I have received.