In China, the AI bubble has already burst
The rout has erased about $480 billion in market value as investors question lofty valuations, future AI demand and export curbs on Chinese tech firms.
- China's STAR50 index of AI and semiconductor leaders has plunged roughly 40% from its July peak, erasing $480 billion in market value as the technology-driven rally reversed sharply.
- Valuations skyrocketed to nearly 250 times trailing earnings before the correction, while traders cite high prices, tax bills, and potential U.S. bans on Chinese equipment in data centers as key drivers of the selloff.
- Shares in robot-maker Unitree have halved since its August debut, while chipmakers MetaX Integrated Circuits and Moore Threads Technology have also halved in value since July after surging 700% and 400% respectively at their market debuts.
- The market rout has pushed investors toward defensive assets, with Lotus Asset Management's Hong Hao warning the correction will "put a stop for many of the companies trying to get themselves listed." Equity fundraising by tech firms is likely to slow.
- China Securities Regulatory Commission Chairman Wu Qing met with market participants earlier this month to discuss oversight, while Beijing-based fund manager Dong Baozhen noted the market "evolved into a speculative crazy bull" before the inevitable collapse.
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Unitree, MetaX and Moore Threats lose half of their value, while Chinese chip and data center components manufacturers fear a price war
China experienced a sharp sell-off in AI and semiconductor stocks, resulting in significant losses in the market value of technology companies. High valuations, export restrictions, and demand concerns weakened investor optimism for the sector.
China Tech Stocks Plunge Amid AI Slump, Wiping Out USD 480 Billion in Market Value | 📲 LatestLY
China’s STAR50 index, tracking leading semiconductor and AI companies, has plunged around 40% in less than four months, wiping out approximately USD 480 billion in market value. Unitree shares have halved since August, while CXMT, MetaX and Moore Threads have also suffered steep declines amid weakening AI demand, export restrictions and investor concerns. 📲 China Tech Stocks Plunge Amid AI Slump, Wiping Out USD 480 Billion in Market Value.
As Chinese stocks related to artificial intelligence (AI) and semiconductors plummet, claims are being raised that the AI investment bubble in the Chinese stock market has already burst. Concerns are emerging that the successive plunges in the stock prices of companies the Chinese government has intensively fostered for technological self-reliance could disrupt fundraising for these technology firms.
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