Reuters: China's AI stock bubble has already burst
Chinese tech shares have already crashed, Reuters reports, with the STAR 50 index down 40% in under four months as global tech wobbles.
By GennnAi··1 min read
The CSI 300 index is down about 20% from its June high. The STAR 50 trades around 100 times its constituents' combined 12-month earnings, down from nearly 250 times at its peak. Beijing-based fund manager Dong Baozhen said the market became speculative before the bubble burst. Reuters found no single trigger for the sell-off. Another fund manager, Wang Zhuo of Shanghai Zhuozhu Investment Management, said all bubbles inevitably burst.
Source: Reuters, published on October 26, 2026.