Chinese technology shares fell sharply on Thursday after AI‑suppliers were dragged into a global tech sell‑off, putting mainland stocks on track for their worst month in a decade. The CSI 300 index slid more than 2%, with a жыл‑to‑date drop of 9.6%, the steepest decline since January 2016. The fall follows disappointing earnings from major U.S. tech firms, dampening optimism for AI‑driven growth.

South Korea’s Kospi index has also fallen almost 40% since mid‑June after a rapid rally. The downturn came after a sharp reversal from Monday’s euphoria, when CXMT jumped 466% on its first day of trading. The "national team"’s support for CXMT helped lift indices even as other markets slid.

Three of China’s top AI companies—Innolight, Eoptolink and Cambricon—lost over $50bn in market value on Thursday. Tencent and Alibaba were relatively flat, but have underperformed this year, falling 21.5% and 21.8% respectively.