China's AI stocks plunge, losing about $480 billion in value
China's AI stocks just took a huge tumble, losing about $480 billion in value, even though the government has been trying to boost technology.
Some major companies have seen their share prices nearly cut in half, and the STAR50 tech index has declined by almost 40% in just three and a half months.
The drop has people questioning whether these stocks were overhyped and whether real profits will follow.
Chinese equipment export curbs deepen uncertainty
This isn't just about investors getting cold feet: additional curbs on the export of Chinese-made equipment are adding to uncertainty about where things go from here.
Since AI-related firms make up around 42% of China's market value, this slide is a big headache for policymakers who want strong capital markets but now face extra uncertainty about where things go from here.