China's AI boom loses $480 billion in four months

The STAR50 index of Chinese AI and semiconductor companies fell 40% from its July peak, wiping out approximately $480 billion in market capitalization, according to Reuters.

Compiled by Sergey KostenchukPublished 2026-10-27Updated 2026-10-27

2026-10-27 Business

📉 China's AI boom loses $480 billion in four months

The STAR50 index, featuring China's AI and semiconductor leaders, fell 40% from its July peak, according to Reuters. Unitree halved in price since its August debut, while MetaX and Moore Threads fell by half since July, and optical suppliers Zhongji Innolight and Eoptolink dropped by approximately 60%.

🌍 The entire Chinese AI supply chain is under pressure, from robots and chips to data center optics, as are IPO plans that Beijing had intended to drive through the exchange: AI stocks account for 42% of market capitalization and 57% of turnover. Valuations have collapsed, not the models.

👤 Model training on Chinese accelerators from Moore Threads and MetaX may slow down: the compression of financing will slow platform development. For investors: STAR50 still trades at approximately 100 times annual earnings, compared to approximately 30 for the Nasdaq 100.

Source 1: https://www.reuters.com/world/china/china-ai-bubble-has-already-burst-2026-10-26/ Source 2: https://www.ibtimes.com.au/china-ai-stock-bubble-bursts-star50-index-falls-1877429

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