Reuters: Shares of Chinese AI and chip manufacturing companies plummet sharply
In China, the value of shares in companies involved in artificial intelligence and chip manufacturing has significantly declined, reports the British news agency.
In less than four months, the STAR50 index, which includes shares of leading technology companies, including semiconductor manufacturers, has fallen by 40%. As a result, their total market capitalization has decreased by approximately $480 billion.
The decline has also affected major Chinese companies: the CSI300 index has lost about 20% compared to its June highs.
Shares of robotics manufacturer Unitree have halved in value since August. Stocks of chipmaker CXMT have lost over 25% of their value in the past month. Shares of other technology companies, including MetaX, Moore Threads, Zhongji Innolight, and Eoptolink, have also seen significant price drops.
Market participants cite overvalued stocks, concerns about AI demand, and potential restrictions on the export of Chinese equipment abroad as reasons for the decline.
Wang Zhuo, a partner at Shanghai Zhuozhu Investment Management, believes that Chinese chip manufacturers and AI developers will face fierce price competition. This could increase pressure on companies' profitability.
