NFRA's Xiao Yuanqi: Overly Concentrated AI Investment Squeezes Financing Space for Traditional Industries

November 3: According to Gelonghui, Xiao Yuanqi, Deputy Administrator of China's National Financial Regulatory Administration (NFRA), said today at the fifth International Financial Leaders Investment Summit hosted by the Hong Kong Monetary Authority: "A large amount of capital has flowed into the tech sector and leading companies, pushing up leverage levels in these areas and potentially leading to overly rapid expansion. Excessive concentration of capital has a crowding-out effect on traditional industries... pushing up these companies' borrowing costs, aggravating their financial burden, and weakening their ability to reinvest and expand production, while also increasing credit risk."

Xiao Yuanqi believes policymakers should formulate corresponding policy frameworks in advance for the AI-driven economic transformation, so as to strengthen macroeconomic management and guard against economic and financial risks.