In China, the AI bubble has already burst
The rout reflects worries over AI demand, export curbs and stretched valuations, with retail favorites and chipmakers taking the biggest losses.
- China's benchmark CSI 300 index entered bear-market territory on Thursday, October 22, falling 20% from its June peak and marking the longest losing streak since the index's 2005 creation. The sell-off has erased $3.5 trillion in market value.
- Technology and AI-related shares led the rout as intense competition eroded corporate margins and earnings missed forecasts by an average of 9 per cent. Weak domestic demand and a multiyear property sector slump compounded investor pessimism.
- Authorities mobilized the 'national team' of state-backed funds to stabilize markets, lifting the index 1.7% on Friday, though weekly losses still totaled 1.6%. A new 20% tax on offshore trust income accelerated capital flight to American institutions.
- The S&P 500 closed at 2.095 times the Shanghai Composite on October 22, the highest ratio since 1997, signaling global capital's shift toward U.S. equities. This divergence reflects deepening investor skepticism about China's long-term prospects.
- International Monetary Fund Director Krishna Srinivasan said last week that fiscal support is "quite limited in size and scope." Beijing continues incremental stimulus, leaving skeptics questioning whether measures suffice to restore economic confidence without structural reforms.
139 Articles
139 Articles
China’s AI Bubble May Have Popped, Taking About R7.9 Trillion With It
The STAR50, home to China’s AI and chip stocks, is down 40%, leaving investors about R7.9 trillion poorer. The post China’s AI Bubble May Have Popped, Taking About R7.9 Trillion With It appeared first on 2oceansvibe News | South African and international news.
WHILE INVESTORS around the world watch with trepidation the hundreds of billions of dollars pouring into artificial intelligence, exactly what everyone fears has happened in China.
(Seoul = Yonhap News) Reporter Kwon Sook-hee = As AI-related stocks recently plummeted in the Chinese stock market, the Chinese government's ambitious "AI rise" is being put to the test.
The excessively high valuations of AI stocks in China are receding under the weight of concerns about artificial intelligence demand and restrictions on Chinese exports. The post China's AI "bubble" has already burst appeared first on in.gr.
The enthusiasm for artificial intelligence seems to be turning into panic in China's financial markets. The actions of companies considered until recently the stars of the AI revolution have collapsed, and investors have wiped out nearly $480 billion of the sector's value in just a few months. Analysts warn that the decline could continue, despite Beijing's promises to support the technology industry.
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