China is set to explore the use of artificial intelligence in regulating its financial services sector and supporting its development. This move is part of the country's efforts to enhance oversight and improve financial support for the real economy. A report presented to the current session of the Standing Committee of the National People's Congress, China's top legislative body, outlined this plan. The report, submitted by the State Council, focuses on financial work in the country.
The report identifies five priorities for the next stage of financial development. These priorities include maintaining a moderate and prudent monetary policy, strengthening financial regulation, and improving financial services for the real economy. The report emphasizes that China will use various policy tools comprehensively to ensure continuous liquidity and will continue to evaluate and improve its monetary policy framework.
In terms of financial regulation, China will crack down on illegal financial activities and explore applications of artificial intelligence in managing financial services. The goal is to enhance consumer protection in the financial sector. The report also mentions that the country will increase support for infrastructure networks, technological innovation, and small businesses.
The report calls for expanding the international use of the yuan and attracting more foreign financial institutions and long-term capital. It also advocates for developing a cross-border payment system for the yuan that is under independent control. This move aims to promote the yuan's global usage and deepen financial cooperation with other countries.
Regarding financial risk prevention, the report stresses the importance of using monetary policy tools to support the capital market. It also highlights the continued implementation of a "white list" mechanism for the real estate sector. This approach is designed to mitigate financial risks and ensure stability in the sector.
China has been enhancing its financial support for the real economy. From October 2025 to September 2026, the total new financing for the real economy reached 33 trillion yuan, approximately $4.9 trillion. During this period, 88 companies were listed on the Shanghai and Shenzhen stock exchanges, with about 90% of them being high-tech firms.
The exploration of AI in financial regulation and development reflects China's efforts to leverage technology for financial sector growth. By integrating AI, the country aims to improve the efficiency and effectiveness of financial services, ultimately supporting economic development. This initiative aligns with China's broader goals of technological advancement and financial modernization.
Key points
- China to explore AI applications in financial services regulation and development.
- Five priorities for China's next stage of financial development outlined.
- China aims to expand international use of the yuan and attract foreign financial institutions.
