China Stock Market Loses $2.4 Trillion Amid Growing Uncertainty

Mainland China's stock market has lost approximately $2.4 trillion in market value since May. This movement reflects investor skepticism regarding the ability of artificial intelligence companies to generate real profits. The technology sector currently accounts for 42% of the value of listed Chinese stocks.

The CSI 300 index entered bear market territory on October 22 after falling more than 20% from its peak. The Shanghai STAR 50 index suffered even more severe damage with a 40% devaluation in less than four months. The total value evaporated in that specific segment reached about $480 billion.

Analysts point out that weak consumption in China and the high cost of technology investments are pressuring stock prices. State intervention through the purchase of index funds has not been enough to sustain a lasting recovery. The scenario is worsened by restrictions imposed by the United States on chips and optical components.

Companies such as ByteDance and Alibaba faced guidance to stop buying Nvidia chips. The ban on the import of foreign humanoid robots by American regulators also impacted the sector. The Chinese market is now dealing with the bursting of a speculative bubble that inflated prices in recent months.