The current stock market frenzy surrounding artificial intelligence warrants caution as a major market correction remains possible, Eddie Yue Wai-man, chief executive of the Hong Kong Monetary Authority, cautioned on Sunday.
Yue expressed growing concern over a potential AI bubble, noting that while financing for AI firms continues to rise, whether the technology can be successfully commercialized to generate substantial corporate revenue remains highly uncertain.
He warned that a sharp stock market correction, coupled with geopolitical tensions and inflation anxieties, could trigger a compounding of risks, leading to a simultaneous decline in both stock and bond markets.
Yue also urged citizens to be cautious in their investments, and said HKMA would monitor the market and have sufficient contingency plans to cope with market volatility.
