Chinese tech firms are bearing the brunt of a faltering global AI trade, with the Star50 Index plunging nearly 40% this half‑year. Major chipmakers Meta X Integrated Circuits Shanghai Co. and Moore Threads Technology Co. have lost about half their value, while the Chi Next index fell 36%. The sector’s earlier rally—up 75% from April to June—has reversed as investors scrutinize demand and earnings.
Foreign outflows from the Hong Kong‑linked trading link hit an estimated ¥90 billion ($13.5 billion) in Q3, the biggest in a year. New IPOs like CXMT Corp. and Yushu Technology Co. have also seen sharp declines. Leonid Mironov of Gavekal Capital warns that prolonged weakness could hinder China’s AI ambitions and fundraising.
Regulators convened Thursday to discuss stabilization measures, but investor skepticism persists.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing