According to Reuters, the STAR50 index, which tracks China’s leading artificial intelligence and semiconductor companies, has fallen nearly 40% from its July peak, erasing approximately $480 billion in market value in less than four months. The CSI 300 benchmark has lost nearly 20% from its June highs, while Unitree, CXMT, MetaX Integrated Circuits and Moore Threads have declined by between 25% and roughly 50% over various periods. Goldman Sachs said AI-related stocks accounted for 42% of China’s total market capitalization and 57% of trading turnover in A-shares and H-shares before the decline. No single trigger has been identified, but stretched valuations, looming tax obligations and risks linked to export controls contributed to the reversal. Beijing issued new anti-bubble guidelines on October 9, 2026, amid efforts to encourage households to invest more savings in the stock market, while the Nasdaq has declined by a comparatively modest 6% over the same period.
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