China's Star50 tech index down nearly 40% now worst globally
China's Star50 index, a major tracker for the country's tech scene, has dropped nearly 40% during the first half of the year.
Big names like MetaX Integrated Circuits Shanghai Co. and Moore Threads Technology Co. saw their values cut in half, making this the worst-performing tech index globally.
The sharp fall has left investors worried about future demand and profits, especially for companies that depend on raising money from stocks.
China's $13.5B outflows threaten AI ambitions
Just months ago, the Star50 had soared by 75%, but things turned quickly as valuations tumbled and $13.5 billion flowed out of Hong Kong trading links, the biggest in a year.
Analysts warn that if pressure continues, it could slow down China's ambitions in AI by making fundraising and innovation even tougher for tech firms.