{"slug": "china-hints-at-regulations-on-quants-ai-usage-in-state-paper", "title": "China Hints at Regulations on Quants, AI Usage in State Paper", "summary": "China should regulate quant funds and artificial intelligence usage, Shanghai Securities News reported, citing investors and experts after roundtables hosted by the China Securities Regulatory Commission (CSRC). The CSRC held an \"unusual number\" of consultations over two days this week, highlighting the need for more oversight on quantitative trading firms, following steep losses in Chinese quant funds earlier this month. The report noted a shift in language from regulating the \"development\" to regulating the \"behaviors\" of quantitative trading and AI usage, suggesting specific measures could be in the pipeline.", "body_md": "(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.\n\nMost Read from Bloomberg\n\n-\n[Hegseth Turns to UNC, Virginia Tech After Dropping Ivy League](https://www.bloomberg.com/news/articles/2026-07-22/hegseth-turns-to-unc-virginia-tech-after-dropping-ivy-league?utm_campaign=bn&utm_medium=distro&utm_source=yahooUS) -\n[Apple Plans Overhaul of MacBooks, iMac in Push to Meet AI Demand](https://www.bloomberg.com/news/articles/2026-07-22/apple-to-launch-new-macbook-air-imac-macbook-pro-neo-mac-mini-mac-studio?utm_campaign=bn&utm_medium=distro&utm_source=yahooUS) -\n[Apple to Launch 'Upgrade' Device Leasing Program With Klarna to Spur Sales](https://www.bloomberg.com/news/articles/2026-07-21/apple-to-launch-upgrade-device-leasing-program-with-klarna-to-spur-sales?utm_campaign=bn&utm_medium=distro&utm_source=yahooUS) -\n[Retina Chip Designed to Restore Sight to Go on Sale in Europe](https://www.bloomberg.com/news/articles/2026-07-22/retina-chip-designed-to-restore-sight-to-go-on-sale-in-europe?utm_campaign=bn&utm_medium=distro&utm_source=yahooUS)\n\nThe 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.\n\nThe 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.\n\nQuant strategies have surged in popularity in recent years, with some products drawing billions of yuan within hours of release.\n\nThe 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.\n\nThe 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.\n\nQuantitative 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.\n\nEarlier 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.", "url": "https://wpnews.pro/news/china-hints-at-regulations-on-quants-ai-usage-in-state-paper", "canonical_source": "https://ca.finance.yahoo.com/news/china-hints-regulations-quants-ai-021709513.html", "published_at": "2026-07-23 02:17:09+00:00", "updated_at": "2026-07-23 04:52:29.129394+00:00", "lang": "en", "topics": ["ai-policy", "artificial-intelligence"], "entities": ["China Securities Regulatory Commission", "Shanghai Securities News", "Xinhua News Agency", "Shanghai Stock Exchange", "CSI 300", "Wu Qing", "Canada Pension Plan Investment Board", "John Graham"], "alternates": {"html": "https://wpnews.pro/news/china-hints-at-regulations-on-quants-ai-usage-in-state-paper", "markdown": "https://wpnews.pro/news/china-hints-at-regulations-on-quants-ai-usage-in-state-paper.md", "text": "https://wpnews.pro/news/china-hints-at-regulations-on-quants-ai-usage-in-state-paper.txt", "jsonld": "https://wpnews.pro/news/china-hints-at-regulations-on-quants-ai-usage-in-state-paper.jsonld"}}