DECRYPT · 2026-10-27 21:16 UTC

China's Stock Market Has Lost $2.4 Trillion as Investors Doubt Its AI Boom Will Ever Pay Off

China's mainland stock market has lost $2.4 trillion in value since May as investors doubt AI companies will become profitable, with AI stocks comprising 42% of market value and 57% of trading volume. The CSI 300 entered bear market territory in October, and Shanghai's STAR 50 tech index fell 40% in four months, erasing $480 billion, while still trading at 100x earnings versus 30x for the Nasdaq 100. Chinese AI startups like DeepSeek and Moonshot AI released competitive products that triggered sell-offs in chip stocks, prompting Beijing to push tech giants toward homegrown chips and away…

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