Sept. 17 — Chen Wenhui, former vice chairman of the China Banking and Insurance Regulatory Commission, said at an investment conference that technology innovation requires long-duration capital and that equity investment funds are important providers of that capital. He warned of local overheating in the primary market and an emerging valuation inversion, where primary-market valuations exceed those in the secondary market. Chen said a persistent inversion could transmit back to markets via high

Sept. 17 — Chen Wenhui, former vice chairman of the China Banking and Insurance Regulatory Commission, said at an investment conference that technology innovation requires long-duration capital and that equity investment funds are important providers of that capital. He warned of local overheating in the primary market and an emerging valuation inversion, where primary-market valuations exceed those in the secondary market. Chen said a persistent inversion could transmit back to markets via high issuance prices, sharp post-listing declines and blocked exits, undermining capital-market health. He urged stronger linkage between primary and secondary pricing so secondary-market price discovery more effectively feeds back to issuers and investors, and said Hong Kong’s connection to international investors can help make equity pricing more scientific and sustainable.