Chinese Stocks Lose $2.4 Trillion as AI Anxiety and Weak Demand Deepen Selloff
Updated
Updated · The Guardian · Oct 27
Chinese Stocks Lose $2.4 Trillion as AI Anxiety and Weak Demand Deepen Selloff
3 articles · Updated · The Guardian · Oct 27
Summary
$2.4 trillion has been erased from Chinese equities since May, with the AI-heavy STAR 50 down 40% since June and other major indexes off about 20%.
Weak domestic demand, thin profit margins and rising US rates have undercut Beijing's AI push, leaving tech companies struggling to turn state-backed investment into sustainable earnings.
US restrictions have added pressure: Washington has banned humanoid robots from China and is weighing curbs on Chinese components in data centres, threatening export-dependent tech groups.
Robotics has become Beijing's flagship AI bet, but demand is still driven mainly by state bodies rather than households; Unitree shares have already halved since their August debut.
Policy support looks limited for now, with no major stimulus expected before this week's fifth plenum and next year's 21st Party Congress, even as US AI listings still attract blockbuster capital.