Key facts
- Xiao Yuanqi, vice head of the China National Financial Regulatory Administration, said capital flowing into technology firms has driven up leverage levels within those areas.
- Xiao said the concentration of capital creates a crowding-out effect on traditional industries by raising borrowing costs and credit risks.
- Xiao said policymakers should prepare policy frameworks addressing the AI-driven transformation in macroeconomic management and financial risk prevention.
The vice head of the China National Financial Regulatory Administration, Xiao Yuanqi, said global investment in artificial intelligence is "overly concentrated" and is crowding out traditional industries by raising their borrowing costs. He spoke at the Hong Kong Monetary Authority's Global Financial Leaders' Summit.