STAR 50 Index Down 40% From Peak as Chinese Tech Sell-Off Deepens Despite Record Chip Revenue
China’s technology sector is caught in a painful paradox. Even as memory chipmaker ChangXin Memory Technologies (CXMT) reported a staggering 1,800% surge in sales; a milestone in Beijing’s push for semiconductor self-sufficiency, its stock has shed more than a quarter of its value over the past month. Bloomberg
The broader market tells an equally grim story: Chinese tech stocks have collectively lost approximately $480 billion in market value in under four months.
The STAR 50 index, home to China’s most prominent innovation-focused companies, has plunged roughly 40% from its July peak. The CSI 300 entered bear market territory last week, down 20% from its June high. The Shanghai Composite briefly broke below 3,600 before staging a modest recovery.
Across the sector, losses have been severe. MetaX and Moore Threads have each lost nearly half their value since July. Optical component makers Zhongji Innolight and Eoptolink are down around 60% from their peaks.
AI-related stocks, which once accounted for 42% of China’s market capitalisation according to Goldman Sachs, have been the hardest hit as investors question whether lofty valuations can be justified by earnings.
Read our previous article on Chinese Tech Stocks and AI related news here.
