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Hierarchical AI Multi-Agent Fundamental Investing: Evidence from China's A-Share Market

arXiv 2510.21147 ↗First posted 24 Oct 2025q-fin.PM cs.AIcited by 0

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Abstract (arXiv)

We present a multi-agent, AI-driven framework for fundamental investing that integrates macro indicators, industry-level and firm-specific information to construct optimized equity portfolios. The architecture comprises: (i) a Macro agent that dynamically screens and weights sectors based on evolving economic indicators and industry performance; (ii) four firm-level agents -- Fundamental, Technical, Report, and News -- that conduct in-depth analyses of individual firms to ensure both breadth and depth of coverage; (iii) a Portfolio agent that uses reinforcement learning to combine the agent outputs into a unified policy to generate the trading strategy; and (iv) a Risk Control agent that adjusts portfolio positions in response to market volatility. We evaluate the system on the constituents by the CSI 300 Index of China's A-share market and find that it consistently outperforms standard benchmarks and a state-of-the-art multi-agent trading system on risk-adjusted returns and drawdown control. Our core contribution is a hierarchical multi-agent design that links top-down macro screening with bottom-up fundamental analysis, offering a robust and extensible approach to factor-based portfolio construction.

Key facts. No citing papers in the map yet (data through 7 Oct 2026). Builds on 14 of its 69 references that are in the map. First posted on arXiv 24 Oct 2025.

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14 of 69 references.

References · 14

  1. 2022ReAct: Synergizing Reasoning and Acting in Language Modelscited by 8,355
  2. 2023ExpeL: LLM Agents Are Experiential Learnerscited by 814
  3. 2022Behavior Transformers: Cloning k modes with one stonecited by 299
  4. 2023FinMem: A Performance-Enhanced LLM Trading Agent with Layered Memory and Character Designcited by 163
  5. 2024A Multimodal Foundation Agent for Financial Trading: Tool-Augmented, Diversified, and Generalistcited by 137
  6. 2024Revolutionizing Finance with LLMs: An Overview of Applications and Insightscited by 88
  7. 2019Deep Reinforcement Learning for Tradingcited by 73
  8. 2023BBT-Fin: Comprehensive Construction of Chinese Financial Domain Pre-trained Language Model, Corpus and Benchmarkcited by 60
  9. 2020Reinforcement-Learning based Portfolio Management with Augmented Asset Movement Prediction Statescited by 55
  10. 2023Alpha-GPT: Human-AI Interactive Alpha Mining for Quantitative Investmentcited by 54
  11. 2024Designing Heterogeneous LLM Agents for Financial Sentiment Analysiscited by 48
  12. 2019Enhancing Time Series Momentum Strategies Using Deep Neural Networkscited by 31
2 more
  1. 2025MASS: Muli-agent simulation scaling for portfolio constructioncited by 9
  2. 2019Robo-advising: Learning Investors' Risk Preferences via Portfolio Choicescited by 7

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