China's AI Stock Bubble Bursts? $480 Billion Wiped Out as Tech Shares Crash Up to 70% | RB1G

While investors debate whether there's an AI bubble in US stocks, has the bubble already burst in China? China's main index of AI stocks, the Star 50, has lost 40% of its value in the last 4 months, or about $480 billion in shareholder value. That compares to about a 6% draw down in the NASDAQ. some

of the most popular AI stocks, the suppliers of uh optical equipment to data centers, uh chip makers, companies that were seen as providing the nuts and bolts of the AI revolution have seen their stock prices collapse 50, 60, 70% in the last few months. What's triggered this selloff? A number of things. Some

people have pointed us to tax bills falling due in China. Others have said that these stocks were priced for perfection, that they were priced for a global market that never wanted to stop buying these things. And now investors are starting to worry that the US might not want Chinese equipment in its data

centers and that companies that were hoping for global revenues might now only find revenue from China. Have China's retail investors being burned? It would absolutely seem so. Many of the companies that have suffered the the heaviest share price falls like the robotics giant Uni Tree were extremely popular uh with retail investors. That

company was 8,000 times overs subscribed at its listing to retail traders. Many of those people bought in after the stock started trading and it has collapsed since then leaving them carrying heavy losses and more than a few grudges because many thought that they were making a safe bet buying into a theme that was backed by the Chinese

government and which gave them the confidence that these stocks couldn't go wrong. So what does this mean for the US? What it shows is that the AI trade is changing. But it also shows us how money is moving away from suppliers, chip makers, builders of equipment that go in AI data centers and fund managers