China AI stock bubble bursts amid valuation collapse
Chinese artificial intelligence and semiconductor shares have dropped sharply over recent months. Lofty valuations collapsed due to cooling demand and export restrictions, ending a two-year market rally.
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China's AI and semiconductor stocks crashed by 40% in less than four months, vaporising $480B in market value. The meltdown in the STAR50 index follows lofty valuations collapsing under worries about demand and export curbs. The reversal dampens state efforts to encourage savers into stocks and threatens wobbly global markets.
