Key facts
- Unprofitable AI startups will be allowed to list on China's STAR Market.
- This policy aims to bolster the domestic tech sector.
- China's foreign exchange regulator is reforming cross-border investment rules.
- New quotas for outbound investments will be issued.
- These measures are intended to facilitate global capital flows.
- Zhu Hexin, head of the State Administration of Foreign Exchange, announced the policy package.
- The announcement was made at the Lujiazui Forum in Shanghai.
China is undertaking a dual-pronged strategy to invigorate its technology sector and reform its approach to cross-border capital. In a move designed to bolster domestic artificial intelligence firms, the country's top securities regulator has announced that unprofitable AI startups will now be permitted to list on the STAR Market. This initiative aims to attract much-needed capital into the burgeoning AI industry and support its growth.
Alongside these efforts to foster domestic technological advancement, China is also overhauling its rules governing cross-border investment. The State Administration of Foreign Exchange (SAFE), led by Zhu Hexin, plans to reform regulations for foreign direct investment and will issue new quotas for outbound investments. These policy adjustments are intended to facilitate global capital flows, signaling a strategic effort to manage and potentially increase China's engagement with international financial markets.