China’s Star50 sinks nearly 40% as global AI stock trade falters
Why it matters: The slide threatens fundraising for Beijing’s chip and AI push after foreign investors pulled an estimated 90 billion yuan in Q3.
Chinese technology shares have become some of the hardest hit in the global AI stock retreat, complicating Beijing’s effort to use capital markets to fund its push for technological leadership. The Star50 Index has fallen nearly 40% in the current half year, while the hardware-heavy ChiNext index is down 36%. Chipmakers MetaX Integrated Circuits Shanghai and Moore Threads Technology have each lost about half their value over that span. The reversal follows a rally of roughly 75% in the Star50 between April and June, when investors piled into AI-related stocks. Bloomberg Intelligence estimated foreign investors withdrew 90 billion yuan from mainland shares via the Hong Kong trading link in the third quarter.