💼 Chinese market loses $2.4 trillion on doubts about AI boom
Bloomberg: Since May 2026, the market capitalization of Chinese stocks has fallen by approximately $2.4 trillion. The STAR 50 lost 40% since June, and the CSI 300 has been in a bear market since October 22; Unitree shares have nearly halved in value since their IPO.
🌍 According to Goldman Sachs, AI companies account for more than 40% of the market value of China and Hong Kong, so their decline is dragging the entire market down. Decoupling is accelerating: training models like GLM-5.2 is being shifted to Huawei chips instead of Nvidia, while the US restricts Chinese robots.
👤 For investors: The STAR 50 trades at ~100x earnings compared to ~30x for the Nasdaq 100 — the market was paying for the narrative, not for profits. Even in a global AI boom, markets lose trillions if companies do not recoup their investments.
Source 1: https://www.theguardian.com/world/2026/oct/27/chinese-markets-lose-trillions-ai-race-beijing Source 2: https://finance.yahoo.com/markets/stocks/articles/chinas-stock-market-lost-2-211602247.html