Chinese tech stocks slump as Star50 index falls nearly 40%
Chinese tech stocks in the current half year just had a rough start: the Star50 Index dropped nearly 40%, making it the world's worst-performing major tech index right now.
Big names like MetaX Integrated Circuits Shanghai Co. and Moore Threads Technology Co. lost almost half their value, which is a sharp turnaround from earlier gains fueled by excitement around AI and government support.
Chinese regulators urge 'national team' purchases
Earlier optimism faded as investors started worrying about future demand and profits.
The ChiNext Index also slid 36%, and foreign investors pulled out about $13.5 billion through Hong Kong, hitting new IPOs like CXMT Corp.
With stocks being so important for company funding, the government stepped in on Thursday, with regulators calling on the "national team" to accelerate stock purchases.