China Securities Regulatory Commission (CSRC) Chairman Wu Qing on Saturday highlighted the growing role of the country's fund industry in supporting technological and industrial innovation, while calling for stronger efforts to curb speculative and disorderly investment practices.
With a new wave of technological and industrial transformation driven by advances in artificial intelligence (AI) gathering pace globally, there is an urgent need for a financial service system better suited to supporting innovation.
Against such a backdrop, addressing the fourth members' congress of the Asset Management Association of China (AMAC), Wu highlighted the growing contribution of China's fund industry to enterprise innovation.
Over the past five years, private equity and venture capital funds have provided 5.25 trillion yuan (about 776 billion U.S. dollars) in innovation capital to unlisted companies, an amount equivalent to 90 percent of equity financing raised in China's domestic market during the same period, he said.
The fund industry's role in supporting the real economy has continued to strengthen in recent years, reflected in the growing scale of venture capital funds and public funds focused on scientific and technological innovation.
"Venture capital funds totaled 3.72 trillion yuan (about 550 billion U.S. dollars) at the end of 2025. Public funds focused on scientific and technological innovation totaled nearly 800 billion yuan (about 118 billion U.S. dollars). There are 75,900 high-tech enterprise projects under investment nationwide, helping nurture a number of industry leaders with global competitiveness," Shi Zhenqiang, executive vice chairman of AMAC, said at the congress.
While highlighting the fund industry's growing role in supporting innovation, Wu urged institutions to better support early-stage and hard-tech ventures while guarding against speculative and disorderly practices.
"Industry institutions, particularly private equity and venture capital funds, should strengthen their ability to support innovators in uncharted areas and better invest in early-stage startups, small enterprises, long-term projects and hard technology that are innovative. We must resolutely curb pseudo-innovation and disorderly innovation, including concept-driven speculation, multi-layered investment structures, excessive speculation and channel-based transactions that merely circulate funds within the financial system," he said.
China's securities regulator hails innovation investment, warns against fads
