China's CSRC Urges Funds to Back Innovation, Warns Against Speculation and Hype

China's top securities regulator urged the fund industry to support domestic innovation while warning against excessive speculation and concept hype. According to RTHK, China Securities Regulatory Commission (CSRC) chairman Wu Qing told a conference on Saturday that regulators will emphasize fairness and standardization, prevent abuse of technological advantages, and crack down on illegal activities such as market manipulation. Wu said China’s emerging and future industries need capital support, and called on the fund industry to focus on national strategies while improving global competitiveness and resilience to external shocks. His remarks followed the CSRC’s move a day earlier to tighten oversight of China’s US$3.4 trillion private fund industry. Wu also cited rising external uncertainties and high market volatility, noting that U.S.-traded chipmakers fell on Friday, erasing about US$1.3 trillion in market value. He said a new wave of technological revolution led by artificial intelligence requires a more compatible financial system, and urged private equity firms to increase long-term investment in early-stage, hard-technology start-ups.