China AI stock bubble bursts as STAR 50 plunges 40%, erasing billions in market value

DIGITIMESOctober 29, 2026en

Chinese AI, robotics, and semiconductor stocks have suffered a steep sell-off in less than four months, casting a shadow over Beijing's push to achieve global technology leadership. According to Reuters , the Shanghai STAR 50 Index has fallen about 40% from its June peak, wiping out approximately US$480 billion in market value across AI and semiconductor components.

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