From June 25 to 27, 2024, the 15th annual meeting of the New Champions, also known as the "Summer Davos", took place in Dalian. Zhang Xiaoyan, Associate Dean and Chair Professor of Finance at Tsinghua University PBC School of Finance, was invited to participate and delivered a speech on June 26th during the session titled "Empowering the Individual Investor."
In her address, Professor Zhang highlighted that although individual investors in China hold only 20% of market value, they account for 80% of the total trading volume. Empowering these investors not only improves their overall financial status but also aids in achieving inclusive finance goals. She believes that empowerment can be approached from three angles: regulation, education, and technology.
Regulatory Efforts: Professor Zhang noted that Chinese regulators are committed to protecting individual investors. At the policy-making level, this includes enhancing information disclosure, improving the quality of listed companies, tightening entry barriers to issuance and listing, and intensifying delisting supervision. At the enforcement level, responsibilities for gatekeepers like investment banks and auditors are emphasized, alongside stringent measures against securities fraud and enhanced monitoring of high-frequency and OTC derivatives trading. Financial institutions are encouraged to increase their professional capacity and ethical standards to offer more diverse and tailored products and services. Furthermore, investor rights are safeguarded through mechanisms like securities class action lawsuits and advance compensation.
Educational Initiatives: China has designated May 15th as "National Investor Protection Publicity Day," promoting financial literacy through various educational activities. Regulatory bodies, industry associations, and financial institutions conduct investor education activities through investor education centers and on-site research.. Moreover, educational content is delivered through videos, podcasts, social media, and interactive games, making financial knowledge accessible to all. The integration of courses, expert lectures, and knowledge competitions into the educational system is designed to enhance the financial literacy of the populace.
Technological Advancements: Professor Zhang emphasized the growing role of Artificial Intelligence (AI) in finance, particularly in information and advisory services. AI systems provide market insights, fund evaluations, return information, and investment tutorials. For advisory services, AI offers comprehensive investment advice, including fund selection, buying and selling recommendations, asset diagnostics, and fund manager suggestions. Robo-advisors utilize automated algorithms on digital platforms to offer both automated and personalized financial advice, significantly reducing traditional consulting costs and making professional advice accessible to more investors.
In conclusion, Professor Zhang stated that protecting investors is an ongoing task that requires persistent effort and adaptation to changing market conditions. China is implementing various measures to advance investor protection, while AI technology assists individual investors in making wiser and more rational decisions, thus enhancing investment returns.
The 15th annual meeting of the New Champions gathered over 1,700 leaders from politics, business, civil society, and international organizations, along with prominent entrepreneurs, innovators, and scholars, to propose insightful and actionable solutions. During the event, Professor Zhang Xiaoyan was interviewed by multiple media, including CGTN, China Daily, Tencent Finance, and Beijing Daily, discussing topics such as green finance, the role of financial institutions in sustainable development, the development of large model industries, and investor education.
