China's financial sector should establish full-spectrum service system, experts say

China's financial sector should establish a full-spectrum service system that interconnects equity investment, loans, bonds and insurance, to provide a solid underpinning for the development of the artificial intelligence industry, experts said.

The AI industry is characterized by high investment, high risk and long cycles, making it difficult for traditional financial support models to fully meet its development needs, Li Jiange, chairman of the board at the National Wealth Development Research Alliance.

Whether it's breakthroughs in fundamental research or the implementation of application scenarios, the AI industry requires a continuous influx of substantial capital, Li said.

"This demands that we cultivate and strengthen patient capital, innovate risk-sharing mechanisms, enrich financial support tools, and explore more flexible and diversified financing channels," Li said,

Chen Wenhui, vice chairman of China Wealth Management 50 Forum, a think tank, said that equity investment funds should play a more enabling role in financial services for AI startups in their early development.

"As these AI companies grow to a certain scale, and gain cash flow, fixed assets, and even profits, other financial instruments can be leveraged, such as loans, bonds, insurance, and public listings," said Chen, also the former vice-chairman of the former China Banking and Insurance Regulatory Commission.

The goal is to create a robust, multi-dimensional financial ecosystem that can effectively support the development of China's AI industry at every stage, Chen added.

On the other hand, experts noted that as a data-intensive and efficiency-sensitive industry, the financial sector has a wealth of scenarios, vast potential, and immense advantages for the application of AI technology.

AI will help solve the problem of information asymmetry in the industry and lower transaction costs, Li said, adding that AI will also assist financial institutions in better serving small and medium-sized enterprises.

Through intelligent algorithms and data mining, AI can deliver innovative solutions to support the development of new areas like green finance and FinTech, ultimately improving the quality and effectiveness of financial services for the real economy, Li said.

wangkeju@chinadaily.com.cn