The Long Game: China's Regulatory Shift Toward Warren Buffett-Style Investing

The China Securities Regulatory Commission (CSRC) has sent a clear signal to investors and market participants: long-term value investing is not just a strategy—it’s a policy imperative. In recent remarks, CSRC Chairman Wu Qing praised Warren Buffett’s principles of patience, rationality, and disciplined capital allocation, framing them as foundational to stabilizing China’s $4.5 trillion mutual fund industry. This endorsement marks a pivotal shift in regulatory priorities, aiming to curb short-term speculation and foster a culture of enduring capital stewardship. But what does this mean for investors, and how might Buffett’s “owner mindset” reshape China’s markets?

The Regulatory Playbook: From Volatility to Vision

Wu Qing’s emphasis on “century-old institutions” and “exceptional investment teams” reveals a deeper strategy. China’s markets have long been plagued by retail investors chasing fleeting trends, amplifying volatility and undermining long-term growth. The CSRC’s proposed reforms—targeting mutual funds, pension funds, and institutional investors—are designed to redirect capital toward patient, fundamentals-driven strategies. By incentivizing firms to adopt Buffett-like approaches, regulators hope to attract stable capital, reduce market swings, and align investments with China’s broader industrial goals, such as clean energy and advanced manufacturing.

A Case Study in Success: BYD and Buffett’s Bet

Nowhere is this strategy more evident than in Warren Buffett’s stake in BYD Company (

). Berkshire Hathaway’s $2.7 billion investment in the automaker has surged 49.1% year-to-date in 2025, as BYD dominates EV markets in Europe and Asia. Buffett’s patience—holding the stock since 2008—has paid dividends, reflecting his mantra: “Our favorite holding period is forever.” This mirrors China’s push for industries with long-term growth trajectories, such as renewable energy and technology.

The Broader Market Implications

The CSRC’s reforms extend beyond individual stocks. By encouraging mutual funds to adopt Buffett-style metrics—such as shareholder returns over multi-year horizons—regulators are tackling a structural issue: the dominance of short-term trading. Over 60% of China’s retail investors hold stocks for less than a month, according to CSRC data. This speculative frenzy has fueled market instability, particularly during trade wars and policy shifts. A shift toward long-term strategies could reduce this volatility while channeling capital into sectors critical to China’s 2030 economic blueprint.

Conclusion: A New Era of Patient Capital

The CSRC’s endorsement of Buffett’s principles is more than symbolic. It reflects a deliberate strategy to institutionalize long-term investing, leveraging China’s industrial might and Buffett’s proven track record. BYD’s success—bolstered by Buffett’s credibility—demonstrates the power of aligning patient capital with innovation. With mutual fund reforms targeting $4.5 trillion in assets, the stage is set for a paradigm shift. Investors who embrace this ethos, focusing on fundamentals and avoiding short-term noise, may find themselves on the right side of history. As Wu Qing noted, the “retirement” of Buffett as CEO won’t diminish his legacy—because his principles, like BYD’s EV dominance, are here to stay.

In a market where volatility often reigns, China’s regulatory push offers a blueprint for stability. The question now is whether investors will heed the call—and let the long game begin.