The Bank of England’s Prudential Regulation Authority is reviewing prime brokerage exposure to Asian equities in London after rapid growth driven by AI‑linked stocks.

Hedge funds are piling into Asian AI infrastructure firms such as SK Hynix, TSMC, Cambricon and newly listed CXMT, whose shares surged 466 per cent on debut, briefly surpassing Tencent.

However, volatility is high; SK Hynix fell about 15 % wiping over $100bn in market value. The BoE worries about concentrated bets, leveraged options and reliance on Asian retail investors.

Revenues from Asia may overtake Europe for banks like Goldman Sachs, JPMorgan Chase and Morgan Stanley. The BoE may issue guidance or raise liquidity requirements.