In China, the AI bubble has burst

Reuters reports that China's AI and semiconductor stock meltdown has cut the STAR50 index by 40% in under four months, wiping out about $480 billion in market value amid worries over AI demand and export curbs. The reversal has stalled Beijing's push for a "slow bull" market and hit retail favorites such as Unitree, CXMT, MetaX and Moore Threads, with AI stocks accounting for 42% of China's market capitalization and 57% of turnover, per Goldman Sachs.