Key facts
- China's CSRC chairman urged the $13 trillion fund industry to support domestic innovation.
- Fund managers were warned against blind bets, launching funds at market peaks, and concept hype.
- Emphasis was placed on long-term investment in early-stage, hard-technology startups.
- Regulators will tighten supervision of computer-driven program trading.
- Oversight of China's $3.4 trillion private fund industry has been tightened.
SHANGHAI, June 6 (Reuters) - China's top securities regulator, Wu Qing, chairman of the China Securities Regulatory Commission (CSRC), urged the country's $13 trillion fund industry to support domestic innovation and emerging industries. Speaking at a conference, Wu cautioned fund managers against making blind bets on certain sectors or launching funds when share prices are high for quick profits. He stressed the need for the industry to focus on national strategies and improve global competitiveness while coping with external shocks. Wu's remarks come amid fierce U.S.-China technological competition and global investor interest in artificial intelligence. He called for private equity firms to play a more strategic role in supporting innovation through long-term investment in early-stage, hard-technology startups. While encouraging the adoption of new technologies like AI, Wu warned against concept hype, convoluted investment structures, and excessive speculation. The CSRC also announced plans to tighten supervision of computer-driven program trading to ensure a level playing field and prevent the unfair use of technology. This directive follows recent tightening of oversight on China's $3.4 trillion private fund industry and clampdowns on illegal cross-border investments.