In China, the AI Bubble Has Already Burst

Tech stocks in China have crashed as lofty valuations collapse under worries about AI demand and curbs on Chinese exports. The meltdown, tanking the mainland STAR50 index of AI and semiconductor leaders by 40 percent in less than four months and vaporising some $480 billion in market value, is an ill omen for wobbly world markets and a dampener on China’s efforts at encouraging its savers into stocks to fund the AI boom.

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