From The Economic Times · Bloomberg · · 1m 10s
Dragon enters bear cave with $2.4 trillion lost
Chinese stocks drop 20% as AI sector faces profit doubts.
In brief
Chinese stocks drop 20% as AI sector faces profit doubts. Chinese stocks lost $2.4 trillion since May peak as AI company profitability concerns drive market declines. Originally reported by The Economic Times.
Chinese stocks drop
Chinese stocks lost $2.4 trillion since May peak as AI company profitability concerns drive market declines.
Market reversal
The declines mark a sharp reversal from the stimulus-driven rally that gained momentum from AI bets before succumbing to a global selloff.
CSI 300 Index down
The CSI 300 Index closed 1.8% lower on Thursday, bringing its total losses from a high in June to 20%.
Tech index plunge
The Hang Seng Tech Index is down 31% for the year as investors question whether hyperscalers' massive spending will generate sufficient returns.
AI profitability concerns
Startup favorites and China's biggest tech firms have emerged as among the biggest losers as scrutiny over future AI demand and earnings prospects intensifies.
Investor warnings
Fu Zhifeng, chief investment officer at Shanghai Chengzhou Investment Management, warned the slide is too rapid and may herald further declines.
The bottom line
Chinese stocks lost $2.4 trillion since May peak as AI company profitability concerns drive market declines.
