The Chinese STAR 50 Index has lost trillions of dollars in value in recent months thanks mostly to lost faith in AI. The total value of AI stocks accounts for 40% of the market. The AI machines being built aren’t making money off their domestic market, a problem the U.S. might be facing soon as well.
Chinese markets lose trillions as race for AI supremacy with US takes its toll | China– www.theguardian.com
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EXCERPT:
Trillions of dollars have been wiped from China’s stock markets in recent months amid increasing anxiety about the future of artificial intelligence, as Beijing races against the United States for dominance in the sector.
The STAR 50 Index, which tracks technology and innovation companies on the Shanghai stock exchange, has plunged 40% since June. Other indexes of major companies dropped by about 20% over the same time period.
The precipitous drop has wiped out $2.4tn from the Chinese stock market since May, according to Bloomberg.
AI stocks account for over 40% of the stock market value in China and Hong Kong, according to Goldman Sachs, meaning that any dent in value will send shockwaves across the whole domestic market.