In China, the AI bubble has already burst
The selloff has wiped out about $480 billion as investors question whether heavy AI spending can deliver lasting profits, Reuters reported.
- 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.
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209 Articles
The ‘Chinese Nasdaq’ has lost almost half of its value since its mid-year peak, drawing an authentic roller coaster of fury and hangover around the rise of artificial intelligence (IA), . Since July, the STAR 50, the benchmark of the Shanghai Stock Exchange STAR market -equipped ... Continue reading "Pinched a technological bubble in the "Chinese Nasdaq"? Index in Shanghai accumulates a drop of almost 50%"
Shanghai (China), 2 Nov (EFE).- The ‘Chinese Nasdaq’ has lost almost half of its value since its peak of mid-year, drawing a real roller coaster of fury and hangover around the rise of artificial intelligence (AI), raising fears to the puncture of a ‘bubuja’ and its possible contagion [...] The entry Is the stock market ‘punch’ of Chinese technology the canary in the mine for AI? was first published in HolaNews.
The STAR 50 index, which tracks technology and innovation companies on the Shanghai stock exchange, has fallen by 40 percent over the past five months. Other indices have also dropped by 20 percent during the same period. "The Chinese AI bubble is bursting," says Paul Verhagen, a geopolitical tech researcher affiliated with The Hague Centre for Strategic Studies (HCSS).
Country advances in the technology race, but investors do not follow global animation
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