Chinese mainland equities have shed about $2.4 trillion in market value since May, according to a Techub report, as investor confidence in the profit outlook for the AI boom has weakened. Goldman Sachs data cited in the report shows AI companies now make up 42% of the total market capitalization of listed firms in mainland China and Hong Kong, while accounting for 57% of trading volume.
The report also highlighted a sharp decline in Shanghai’s STAR 50 Index, which has fallen 40% in less than four months, wiping out about $480 billion in market value. The index is largely made up of major technology and chip companies, and its constituents are still trading at roughly 100 times earnings.
Separately, the report said the U.S. Federal Communications Commission banned imports of new foreign-made humanoid robots in July on national security grounds. Washington is also planning to bar U.S. data centers from using Chinese-made optical components.
Chinese mainland stocks have lost about $2.4 trillion in market value since May, according to Techub, as investor confidence in whether the AI boom can generate profits has weakened.
Goldman Sachs data cited in the report shows AI companies now account for 42% of the total market capitalization of listed firms in mainland China and Hong Kong, and 57% of trading volume.
STAR 50 drops 40% in less than four months
Shanghai’s STAR 50 Index has fallen 40% in less than four months, erasing about $480 billion in market value. The index is mainly composed of large technology and chip companies, and its price-to-earnings ratio remains around 100.
U.S. restrictions were also noted
The report said the U.S. Federal Communications Commission, or FCC, banned imports of new foreign-made humanoid robots in July on national security grounds. Washington is also planning to prohibit U.S. data centers from using Chinese-made optical components.
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