Lack of profits and the threat posed by western countries are raising concern about the sustainability of Beijing’s AI boom
Trillions of dollars have been wiped from China’s stock markets in recent months amid increasing anxiety about the future of artificial intelligence, as Beijing races against the United States for dominance in the sector.
The STAR 50 Index, which tracks technology and innovation companies on the Shanghai stock exchange, has plunged 40% since June. Other indexes of major companies dropped by about 20% over the same time period.
The precipitous drop has wiped out $2.4tn from the Chinese stock market since May, according to Bloomberg.
AI stocks account for over 40% of the stock market value in China and Hong Kong, according to Goldman Sachs, meaning that any dent in value will send shockwaves across the whole domestic market.
Yes true but this article is one of many and the pressures on China’s approach are legitimately mounting. Fair point though. Stock markets dont mean much in china.
Ironically though I think stock market volatility of Chinese AI stocks shows their stock market is a bit healthier on that portfolio compared to the US which has runaway growth built on massive USD quantitative easing.
I think the pressures are exaggerated. There’s a lot of money in discounting China’s approach, considering how much money is invested in the western approach. I agree, the volatility of the stock market in China does actually seem to point to it being more grounded.