Stocks listed in mainland China have shed about $2.4 trillion in market value since May, while the STAR 50 index of technology and semiconductor companies has fallen 40% in less than four months. According to Goldman Sachs, artificial intelligence companies account for 42% of the market value of Chinese stocks and 57% of trading, magnifying the effect of their losses on the broader market. The CSI 300 entered a bear market on October 22, while the STAR 50 still trades at roughly 100 times earnings despite a substantial decline from its peak. U.S. restrictions on Chinese humanoid robots and optical components, weak Chinese consumer spending, and high energy and borrowing costs are adding pressure to risk assets, with Bitcoin briefly falling below $80,000 ahead of the Federal Reserve’s October 28 decision.
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