Xiao Yuanqi, Director of the National Financial Regulatory Administration: “AI-related investment is overly concentrated, squeezing financing space for traditional industries.”

At the fifth International Financial Leaders Investment Summit—hosted by the Hong Kong Monetary Authority—Xiao Yuanqi, Deputy Director of China’s National Financial Regulatory Administration, noted that the technology sector and leading enterprises are attracting substantial capital inflows, thereby elevating leverage ratios in related areas and potentially fueling excessive expansion. He further stressed that this disproportionate concentration of capital into a narrow set of sectors is exerting a significant crowding-out effect on traditional industries: not only raising their financing costs but also intensifying financial pressure, dampening willingness to reinvest and limiting capacity expansion—while simultaneously amplifying credit risk. Regarding the profound economic transformation driven by artificial intelligence, Xiao urged policymakers to proactively design adaptive policy frameworks to strengthen macroeconomic management and effectively guard against systemic economic and financial risks.