Mr. Xiao Yuanqi, Deputy Director of China’s National Financial Regulatory Administration (NFRA), warned that large capital flows concentrated in the technology sector and leading companies could increase leverage and credit risks.

Speaking at the fifth International Financial Leaders’ Investment Summit hosted by the Hong Kong Monetary Authority, Mr. Xiao said rising leverage could cause these sectors to expand too quickly.

In his view, excessive capital concentration also crowds out traditional industries, driving up borrowing costs and businesses’ financial burdens while weakening their ability to reinvest and expand production.

He believes policymakers need to establish an appropriate framework in advance for the AI-driven economic transition, in order to strengthen macroeconomic management and prevent economic and financial risks.

Source: https://tintucbitcoin.com/nfra-dau-tu-ai-tap-trung-qua-muc-thu-hep-von-cho-nganh-truyen-thong/

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