Published online by Cambridge University Press: 01 July 2021
As a form of artificial intelligence in the financial markets, robo-advisory has grown rapidly to provide automated investment services along with human advisors. Automated investment advice firms have brought significant benefits by improving the delivery of high-quality, less-biased financial advice. However, robo-advisors also bring risks due to the high dependence on technology. In the area of robo-advisory services, China has several advantages, such as strong consumer demand and a rapidly rising middle class, as well as disadvantages such as regulatory risks and low-level service quality. The over-demanding and inconsistent entry threshold, insufficient asset management powers of robo-advisors, weak fiduciary duties and inadequate information disclosure duties have hindered the development of robo-advisory services in China. By analysing the overseas experiences and local conditions, this chapter makes relevant suggestions for further improvement of the Chinese regulatory regime.
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