China AI bubble burst cuts STAR50 index by about 40%
A sharp slide in Chinese AI and chip shares has wiped about $480 billion in value, with possible cheaper tools—and vendor risks—for Pakistani tech firms.
About $480 billion in Chinese AI and semiconductor market value has been wiped out in the recent sell-off.
The STAR50 AI and chip index fell about 40% in under four months; the CSI300 is down about 20% from June highs.
Shares in Unitree, MetaX, Moore Threads and several optical-chip firms have roughly halved or fallen about 60% from peaks.
Pakistani fintechs, SaaS and e-commerce firms that use Chinese AI models and chips may see lower prices if the slump lasts.
Pakistan’s founding role in China’s WAICO means weaker Chinese AI investment could slow joint projects.