China’s tech-heavy STAR50 index has collapsed, dropping 40% in under four months and wiping out roughly $480 billion in market value.
The massive sell-off reflects growing anxiety among investors over slowing artificial intelligence demand, mounting price wars, and expanding U.S. export restrictions targeting Chinese tech infrastructure.
Once driven by speculative retail enthusiasm, China's high-flying AI rally has unraveled far faster than Western tech markets.
The sharp correction has stalled high-profile IPOs and challenged Beijing’s broader ambition to foster a steady "slow bull" market to fund domestic technology independence.
Watch this video from Reuters.
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