China's Top Securities Regulator Warns Against AI-Driven Stock Speculation, Plans Guidance Targeting Deepfakes and Model Hype in Capital Markets

CSRC chairman Wu Qing told the Lujiazui Forum in Shanghai on June 17 that authorities will 'strictly investigate and punish' illicit activities including riding AI tech themes to hype stock concepts, market manipulation, and insider trading enabled by AI tools. The regulator plans specific guidance on AI use in capital markets, targeting deepfake videos of public figures promoting stocks and listed companies exaggerating their 'AI story' to inflate valuations. The warning signals Beijing's growing alarm that China's domestic AI equity rally — which has driven outsized gains across AI-linked names in 2026 — is creating systemic conditions for market abuse that the CSRC is now moving to structurally close.