Technology
China STAR50 AI index falls 40% in under four months
The Indian Express·
China's STAR50 index of AI and semiconductor leaders has fallen 40 percent in less than four months, erasing some $480 billion in market value, The Indian Express reported. The broader blue-chip index is about 20 percent below June highs. AI-linked stocks make up 42 percent of China market capitalisation, Goldman Sachs data cited in the report said.
Prism
What It Means For You
- STAR50 still trades near 100 times trailing earnings, down from nearly 250.
- Unitree shares have halved since August trading began after heavy retail demand.
- Optical parts makers Zhongji Innolight and Eoptolink are down about 60 percent from mid-year highs.
What's Happening
- Chipmakers MetaX and Moore Threads have halved in value since July after large debut gains.
- CXMT has lost more than a quarter of its value in the past month.
- The Nasdaq drawdown from its record was cited as about 6 percent for comparison.
What Drove The Selloff
- Traders pointed to high prices, tax bills and export-curb risks on Chinese data-centre gear.
- Fund manager Dong Baozhen said a speculative rally had given way to a bursting bubble.
- AI names were said to account for 57 percent of turnover across mainland and Hong Kong shares.
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