China Hints at Regulations on Quants, AI Usage in State Paper

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Or sign-in if you have an account.(Bloomberg) — China should regulate quant funds and the usage of artificial intelligence, Shanghai Securities News reported, citing investors and experts after a series of roundtables hosted by the country’s securities watchdog.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe China Securities Regulatory Commission held an “unusual number” of consultations with investors, listed companies and experts over two days this week. The meetings highlighted the need to put more oversight on quantitative trading firms, the newspaper said in a Thursday report. The outlet is founded by the Shanghai Stock Exchange but now managed by the official Xinhua News Agency. The report followed one of the worst setbacks for Chinese quant funds earlier this month, when steep losses rattled wealthy investors and stoked fears of bubbles in the AI‑driven stock rally. The rhetoric is more measured than the forceful steps regulators took during the quant meltdown in 2024, when they froze the accounts of a major fund and barred the trading firms from unwinding leveraged positions.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againQuant strategies have surged in popularity in recent years, with some products drawing billions of yuan within hours of release.The meeting readouts showed a shift in language, from the broader call of regulating the “development” of quantitative trading and AI usage in early consultations to specifically regulating the “behaviors” in later meetings. Such a shift shows that specific measures could be in the pipeline, the report said.The CSRC consultations were part of the country’s coordinated effort to stem the tech-led stock rout over the past month. State‑backed investment firms, part of the so‑called “National Team,” ramped up equity purchases, while several listed companies boosted buybacks, helping spark a market rebound earlier this week. The CSI 300 index rose 0.1% early on Thursday. Quantitative trading isn’t inherently problematic, but it must not become an “amplifier of market volatility,” the paper said. Clear boundaries on how the technology is applied are needed, the paper said, citing anonymous experts.Earlier in the week CSRC Chairman Wu Qing vowed to focus on preventing risks, strengthening regulation and supporting high‑quality market development. In a meeting with Canada Pension Plan Investment Board Chief Executive Officer John Graham, Wu said the watchdog would “resolutely” safeguard stable and healthy operations of the capital market and welcomes international institutional investors. —With assistance from Zhang Dingmin.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.