China’s securities regulator wants investors to calm down about AI stocks. The market, predictably, is not listening.

The China Securities Regulatory Commission announced stricter enforcement measures targeting market manipulation and insider trading in AI-related equities, with CSRC Chairman Wu Qing laying out the plan at the Lujiazui Forum on June 17. The goal is straightforward: protect market integrity without strangling the country’s AI ambitions.

A rally that’s hard to ignore

The CSI artificial intelligence index has climbed nearly 30% year-to-date as of mid-June, dwarfing the broader CSI 300 index’s modest 6% gain over the same period.

The SSE Star 50 index, home to many of China’s marquee technology and AI firms, surged approximately 65% in the first half of 2026.