Eddie Yue Wai-man, chief executive of the Hong Kong Monetary Authority, warned on Sunday that the city must prepare for an artificial intelligence bubble and quantum computer threats to financial systems.
Eddie Yue Wai-man cautioned banks to maintain strong capital buffers and risk management amid potential market corrections. He highlighted risks from rising debt in the AI sector and uncertainty over its commercial returns.
Yue also said the regulator would focus on expanding the internationalisation of the yuan in coming years. He noted a possible stacking of risks if market downturns coincide with geopolitical events that raise inflation concerns.
In March, Google warned that quantum computers could hack some encrypted systems by 2029. Yue urged preparations to safeguard data and financial stability.
