BIS: AI bubble burst and opaque financing constitute core risks to the global financial system.

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Mars Finance News, the Bank for International Settlements (BIS) warned in its latest annual report that the bursting of the AI bubble, a rebound in inflation, and sovereign debt pressures are the three core risks currently threatening global economic prosperity. The report pointed out that if investment returns in the AI sector fall short of expectations, the current wave of capital expenditure could evolve into a long-term contraction in investment, triggering significant macroeconomic turmoil. The BIS specifically highlighted the complex "circular financing" patterns within the AI industry chain, such as cross-shareholdings between chip manufacturers and AI labs or cloud service providers, as well as computing power binding procurement agreements. The institution emphasized that such transactions often lack transparency and pose risks of multiple collateralization of the same asset. Additionally, energy shocks caused by geopolitical conflicts may lead to a secondary rebound in inflation, and when combined with hedge funds' high-leverage arbitrage trades in government bond markets, will further exacerbate the fragility of the global financial system.
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