AI bubble reportedly bursts in China
The gist
China's STAR50 index of AI and semiconductor firms fell 40% in under four months, erasing about $480 billion.
AI stocks are 42% of China's market value, so the drop reaches broadly.
How it unfolded
- Oct 22, 2026DeepSeek raised $15 billion in one of China's largest funding rounds, and Huawei secured a $2.3 billion loan from Chinese banks to buy more AI chips.
- Oct 26, 2026Reuters published a report headlined 'In China, the AI bubble has already burst,' saying valuations collapsed under worries about AI demand and curbs on Chinese exports.
- Oct 27, 2026Reports said the STAR50 index fell 40% in less than four months, wiping out about $480 billion in market value. Unitree shares halved since its August IPO, CXMT lost more than a quarter in a month, and MetaX and Moore Threads halved since July.