China’s top securities regulator has called on the country’s fund industry to support innovation and emerging technologies while warning against excessive speculation and market hype.
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Speaking at an industry conference on Saturday, China Securities Regulatory Commission (CSRC) Chairman Wu Qing urged fund managers to align investments with national development goals and provide long-term support to strategic sectors.
Focus on Innovation and Technology
Wu said China’s rapidly growing emerging industries require stronger financial backing to drive innovation and future economic growth.
He emphasized that the country’s fund industry should support national strategies and strengthen its ability to compete globally.
Furthermore, he noted that investment institutions must improve their resilience against external economic and financial shocks.
According to Wu, innovation-led industries, particularly those linked to advanced technology, need sustained capital support.
Warning Against Market Hype
At the same time, Wu cautioned fund managers against speculative behavior.
He urged firms not to make blind investments in popular sectors or launch new funds solely to benefit from rising share prices.
Moreover, he warned against concept-driven investment trends, complex financial structures, and excessive market speculation.
The regulator stressed that long-term value creation should take priority over short-term gains.
AI Driving New Opportunities
Wu highlighted the growing impact of artificial intelligence on global markets and industries.
He said the latest technological revolution requires a financial system that can effectively support innovation and technological advancement.
In addition, he encouraged fund managers to adopt new technologies, including AI, to improve business operations and investment strategies.
However, he emphasized that firms should use these technologies responsibly and avoid fueling speculative market behavior.
Increased Regulatory Oversight
The remarks came shortly after the CSRC announced tighter supervision of China’s private fund industry, which manages assets worth approximately $3.4 trillion.
Earlier, Chinese authorities also increased scrutiny of cross-border investment activities as part of broader financial oversight efforts.
Meanwhile, regulators continue to monitor market activity amid growing volatility in global financial markets.
Global Uncertainty Remains a Concern
Wu noted that external uncertainties are increasing and that global financial markets continue to experience significant fluctuations.
Furthermore, changing investment patterns and major shifts in global asset allocation have created new challenges for investors.
As a result, he called on private equity firms to take a more strategic role in supporting innovation, particularly through long-term investment in early-stage technology companies.
Finally, Wu said regulators will strengthen oversight of computer-driven program trading to promote fair competition and prevent the misuse of advanced technologies in financial markets.
