At the "2025 Greater Bay Area Exchange Technology Conference" co-hosted by the Shenzhen Stock Exchange, Hong Kong Stock Exchange, and Guangzhou Futures Exchange on November 28, Fang Hanting, a leading researcher at Zhejiang University's National Strategy and Regional Development Research Institute, systematically elaborated on AI's transformative role in capital markets. He stated that AI will become the core engine of capital market development, permeating every aspect from IPO screening and compliance reviews to comprehensive investment decisions. Fang predicted a future where "no AI means no IPO," with AI evolving from "conversational interaction" to "decision-making action." He emphasized that China's vast application scenarios could help AI-driven companies like DeepSeek transition from application-focused firms to technology innovators, potentially positioning China as a dominant force in the global AI race.

**"What Era Are We In?"** Fang outlined three eras of human civilization: the limb-energy era (tool-making to liberate hands and feet), the physical-energy era (industrial revolution amplifying human strength), and the current intelligence-energy era (liberating and amplifying human cognition). "We now live in the era foreseen by Alan Turing's 1950 test—where machines achieve human-equivalent information processing," he noted. While Turing's prediction of machines passing his test by 2000 fell short, today's AI models like ChatGPT and DeepSeek are nearing that milestone.

**"No AI, No IPO"** Fang projected a capital market dominated by AI-driven companies and AI adopters, where exchanges and service providers must embrace AI or risk obsolescence. China's AI sector, both in technology and applications, is in rapid ascent: core AI industries surpassed ¥700 billion in 2024 (20% CAGR), with applications expected to account for 52% of the ¥800 billion market by 2025. Regulatory tailwinds include streamlined IPO rules for AI firms (e.g., shortened operating history requirements) and policy emphasis on "new productive forces" like AI. "Soon, listing without AI integration may be unthinkable," Fang asserted.

**Solving Capital Markets' Three Pain Points** 1. **Efficiency**: Traditional manual and rule-driven data processing struggles with unstructured, high-frequency data. 2. **Decision Bias**: Human-led financial institutions face cognitive limitations and "AI hallucinations" (fabricated outputs from data gaps). 3. **Regulatory Lag**: Reactive oversight fails at real-time risk alerts. AI can shift compliance from post-facto penalties to proactive prevention.

**From "Tool" to "Agent"** AI mitigates moral hazards (e.g., unbiased disclosure verification) and slashes costs—cutting 90% of the time and expense in report preparation (from 180 hours and $50K–$1M per document). As a "deep assistant," AI is reshaping investment banking by automating repetitive tasks (e.g., due diligence) with superior accuracy, compressing decades-long talent development cycles.

**Regulation: From "Watchtower" to "Autopilot"** AI transforms oversight by enabling early intervention (e.g., Hong Kong's market surveillance model detecting 20–30 blind spots preemptively). Compliance models like Zhongguancun Tech's vertical AI streamline reporting, embedding regulatory requirements into daily operations. "Regulators and firms increasingly share the goal of compliance," Fang observed.

**Future of Finance "AI+"** 1. **Decision-Making AI**: Evolving beyond chatbots to execute complex financial actions autonomously. 2. **Cross-Border Governance**: Multimodal AI (text/voice/video) could harmonize global regulations, retaining innovative firms domestically. 3. **Privacy-Preserving Tech**: "Data usability without visibility" via privacy computing balances security and analytics needs.

**China's "Scenario-Driven" Advantage** Fang cited DeepSeek's journey from quant-trading applications to AI innovation as proof that real-world demand fuels technical breakthroughs. China's vast industrial and consumer landscapes offer fertile ground for iterative AI refinement—a potential edge in global competition. "Rich scenarios turn appliers into creators," he concluded, framing this as China's path to AI supremacy.