AI Trade Crash: Not US, not India, but this stock market has become collateral damage
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The Chinese Star50 index fell nearly 40% during the first half of the year as the global AI trade faltered.
- ✓Investors got wary of future demand, leading to a massive $13.5 billion outflow.
- ✓Many tech stocks lost half their value, leaving investors worried about the future of China’s AI ambitions.
Story at a Glance
- Category
- MARKET
- Reported By
- CNBC TV18
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
The faltering of the global AI trade has resulted in the Chinese companies emerge as the biggest losers.
During the first half of the year, the Nasdaq-style Star50 index is down nearly 40%, becoming the world's worst performing major tech gauge. Losses here have been led by MetaX Integrated Circuits Shanghai Co. and Moore Threads Technology Co., both of whom have shed around 50% of their value during this period.
A hardware-focused ChiNext index has also declined 36% during this period.
The move appears similar to the KOSPI in South Korea, which led the AI boom in the Asia-Pacific, and indices such as Star50 latched on to it, but the current unwinding has left many an investor bleeding. Back then, investors continued to ignore frothy valuations to bet on the global AI boom.
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CNBC TV18
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