China unveils Shangji, its first AI model to measure how weather impacts stocks—helping forecast asset performance and financial risk.
BEIJING: China has taken a bold step in combining meteorology with finance by launching its first artificial intelligence model that predicts how weather conditions affect stock market movements. The tool, named Shangji (meaning “Stock”), was developed by Fudan University in Shanghai alongside the National Meteorological Information Centre.
Unveiled by the China Meteorological Administration (CMA), the AI model is designed to analyse the link between climate data and financial markets, making it easier for investors to assess risk and make informed decisions. According to Zhao Yanxia, the Director of CMA’s key lab for financial meteorology and one of the model’s lead developers, Shangji blends global weather data with historical stock trading behaviour to offer short-term return forecasts for China’s A-share market.
Early trials show that Shangji accurately flags sectors most sensitive to weather shifts, including renewables like solar and wind, petrochemicals, agriculture, and construction. By mapping climate variables to stock price performance, the model aims to fill a crucial gap in the emerging field of financial meteorology.
As climate change introduces more volatility into global markets, tools like Shangji can help traders and institutions build better strategies and reduce exposure to weather-driven risks. It also reflects China’s growing interest in sustainable finance and smart investment tech.
CMA confirmed that Shangji aligns with international standards and could pave the way for more advanced climate-finance modelling tools across Asia and beyond.
