CHINESE MARKETS LOSE TRILLIONS AS RACE FOR AI SUPREMACY WITH US TAKES ITS TOLL

What happened: Trillions of dollars have been wiped from China's stock markets amid anxiety about AI, as Beijing races the US for dominance in the sector. The STAR 50 Index has plunged 40% since June. Key numbers: STAR 50 down 40% since June; other major indexes down about 20%; $2.4tn wiped out since May per Bloomberg; AI stocks over 40% of market value in Why it matters: The fall suggests weak domestic demand cannot sustain a booming market despite government investment in AI. Analysts cite thin profit margins, US rate rises, weak demand, and threats of Western bans on Chinese technology.

Trillions of dollars have been wiped from China's stock markets amid anxiety about AI, as Beijing races the US for dominance in the sector. The STAR 50 Index has plunged 40% since June.

The fall suggests weak domestic demand cannot sustain a booming market despite government investment in AI. Analysts cite thin profit margins, US rate rises, weak demand, and threats of Western bans on Chinese technology.