STAR 50 index plunges 40% as China tech loses $480B
China's AI and semiconductor sectors have taken a huge hit, dropping $480 billion in market value in less than four months.
The STAR 50 index, which tracks leading AI and semiconductor companies, plunged 40% as investors pulled out over high prices, concerns over AI demand, and restrictions on Chinese exports.
This shakeup is making it tougher for China to convince regular people to invest in its tech future.
Government-backed rally stalls amid investor jitters
This selloff stalls a two-year winning streak fueled by government support.
Now, with talk of the risk of the US or other countries banning Chinese equipment from data centers and warnings from big investors about an "AI bubble," many are feeling jittery.
While some still believe in the long-term promise of China's tech scene, others are waiting to see if things stabilize before jumping back in.