BEIJING: Has China’s artificial intelligence bubble finally burst? A once-soaring rally in Chinese AI stocks has lost much of its momentum, with a sharp sell-off raising questions about whether enthusiasm for the technology has pushed share prices beyond what companies’ earnings could justify.
But while the decline has fuelled debate over whether an AI investment bubble is deflating, analysts told CNA that falling share prices do not necessarily signal a setback for China’s broader AI ambitions – or suggest that other markets are headed for a similar correction.
As of Thursday (Oct 29), China’s STAR 50 Index, which tracks 50 major tech and innovation companies on the Shanghai Stock Exchange, had fallen more than 40 per cent over four months, wiping out some US$480 billion in market value.
The scale of the decline has brought renewed scrutiny as to whether heavy spending on AI can translate into higher profits, and what the reversal means for China’s tech ambitions and the wider global AI investment boom.
Has China’s AI bubble burst? What this means for the global tech boom
