China has warned of an artificial intelligence bubble, with the head of the China Securities Regulatory Commission, Wu Qing, calling on the country's fund management sector — which holds assets of around $13 trillion — to support domestic innovation, while cautioning against excessive speculation and betting on trending investment themes.
Speaking at a conference, he said fund managers should avoid making random bets on specific sectors or launching investment funds when stock prices are elevated in order to achieve quick profits.
The warning comes amid intensifying technological competition between China and the United States, and growing enthusiasm among global investors for artificial intelligence technologies.
He added that "China's thriving emerging and future industries are in urgent need of capital support," noting that the country's fund industry should focus on national strategies, and also work to strengthen its global competitiveness and withstand external shocks.
The regulator's remarks came one day after China tightened oversight of its private equity fund sector, which holds assets of around $3.4 trillion, and weeks after Beijing tightened restrictions on cross-border investments it described as "illegal."