Chinese regulator warns AI investment is becoming too concentrated

Reuters reported that Xiao Yuanqi, deputy head of China's National Financial Regulatory Administration, told a Hong Kong summit that rapid inflows into technology and leading firms were increasing leverage and could encourage expansion at an unsustainable pace.

Xiao said higher borrowing costs can crowd traditional industries out of capital markets and weaken their ability to reinvest. He called for macroeconomic and financial-risk frameworks designed specifically for the AI-driven transition.