During the 22nd Annual Yabuli Forum Summer Session 2026, held from September 4-6 in Chengdu, Sichuan, under the theme "Corporate Innovation and Crossing Cycles," Yuan Bing, Chairman of TCL Capital, shared insights on the current investment landscape.

Yuan noted that a moderate level of froth in the early stages of AI industry development is, in a sense, healthy, as it signals vibrancy. A lack of activity in a nascent sector, he argued, would pose a far greater concern. Both speculative enthusiasm and measured progress hold value at different points in an industry's cycle, and must be evaluated contextually.

He acknowledged that elevated valuations are nothing new to seasoned investors. "Our primary benchmark is how many tangible problems a company can solve now and in the future," Yuan explained. "We then examine its application scenarios and its ability to address real-world needs. Since data underpins AI advancement, we also rigorously assess a firm's data assets and how that data translates into productivity, ultimately influencing industry outcomes and daily life."

While acknowledging that successive funding rounds doubling valuations in AI ventures warrant caution, Yuan affirmed TCL Capital's embrace of the current AI wave. Describing his firm's approach as relatively conservative for an industrial investor, he said, "We conduct thorough research on the majority of players in the market, evaluating team composition, core technological capabilities, data accumulation, and model generalization. Rather than casting a wide net, we employ a focused strategy, prioritizing companies with the potential to evolve into leaders. At this stage, valuation is not our foremost concern; we will reassess valuation levels as the industry cycle matures."

Comparing domestic AI enterprises to their US counterparts, Yuan observed that Chinese companies remain undervalued, leaving substantial room for growth. While near-term valuations may not catch up to US benchmarks, he believes the vast domestic industrial base and technological foundation support upward valuation potential over the long term.

"Simultaneously, we aim to mitigate risks," Yuan added, "particularly by exercising heightened scrutiny toward ventures that rely solely on polished pitch decks to secure funding."