Index of Chinese AI and Semiconductor Companies Falls 40%

In less than four months, China’s STAR 50 index, which includes companies in artificial intelligence and semiconductors, fell 40%. The market value of their shares dropped by about $480 billion. The selloff interrupted a two-year rally.

Among the reasons for investor concern, the source cites high company valuations, doubts about demand for AI, and the threat of restrictions on supplies of Chinese data-center equipment. Shares of AI-related companies account for 57% of trading turnover in mainland China and Hong Kong.

Translation editor: Салтанов А.