SHANGHAI ((Reuters)) - China's securities watchdog will step up monitoring fake information in the stock market and work with the police and cyberspace regulators to crack down on those who disseminate false news, which is being made easier by AI, official media reported on Saturday.

Regulators will "hit early, hit hard, and hit at the heart" of the issue, the Securities Times said.

Artificial intelligence has become a new tool for creating and spreading misleading information to con investors or manipulate stocks, luring investors with the prospect of getting rich quickly, the Shanghai Securities News said in a separate article. 

The rise of Chinese AI company DeepSeek has driven retail investors and fund managers to embrace AI to help them evaluate companies and invest, but their adoption of the technology also raises risks they will become vulnerable to fake news created by artificial intelligence. 

The Securities Times said the China Securities Regulatory Commission would be more pro-active in dispelling stock market rumours by issuing clarifications and would strengthen investor education and guidance to "enhance investors' ability to spot" fake information.

The reports by the Securities Times and the Shanghai Securities News coincide with the March 15 annual World Consumer Rights Day, which has become a major television and social media event in China to promote consumer protection.

(Reporting by Shanghai Newsroom; Editing by Susan Fenton)