The Bank of England is investigating rapid growth in London-based investment banks' exposure to Asian equities; officials say they want to avoid highly concentrated bets on a handful of AI-related names. Hedge funds and other institutions have been channeling capital into companies supplying AI semiconductor infrastructure in Asia, including SK Hynix and TSMC. The central bank says these Asian stocks are becoming an increasingly significant part of major UK brokers' books and appear concentrated

The Bank of England is investigating rapid growth in London-based investment banks' exposure to Asian equities; officials say they want to avoid highly concentrated bets on a handful of AI-related names. Hedge funds and other institutions have been channeling capital into companies supplying AI semiconductor infrastructure in Asia, including SK Hynix and TSMC. The central bank says these Asian stocks are becoming an increasingly significant part of major UK brokers' books and appear concentrated in a small set of AI-linked firms. Clients may be taking additional risk through high‑leverage option positions in Asian markets, and some institutions may be raising capital from Asian retail investors to fund trading — a potential liquidity vulnerability if those retail holders sell quickly in a stress event.