# China shares slide as doubts grow over lasting returns from AI boom

- URL: https://talkfuse.com/story/chinese-markets-lose-trillions-as-race-for-ai-supremacy-with-us-takes-its-toll/
- Published: 2026-10-27T04:42:50+00:00
- Updated: 2026-10-27T05:02:19+00:00
- Original publisher: The Guardian (publisher lean: Left)
- Original article: https://www.theguardian.com/world/2026/oct/27/chinese-markets-lose-trillions-ai-race-beijing
- Topics: AI, Americas, Art, Asia, Business, Culture, Health, Markets, Mental Health, Technology, World

## Key points

- China’s stock market has lost $2.4tn since May.
- AI shares account for over 40% of China and Hong Kong market value.
- Weak demand and possible US restrictions weigh on tech firms.

## Summary

Chinese shares have fallen sharply as concerns grow over whether the country’s AI boom can generate lasting profits. The downturn highlights the pressure on Beijing’s effort to compete with the US, as weak demand at home and the risk of Western restrictions weigh on technology companies.

The STAR 50 Index has dropped 40% since June, while other major indexes have fallen about 20%; Bloomberg estimates $2.4tn has been erased from China’s stock market since May. AI stocks make up more than 40% of the market value in China and Hong Kong, and a new 60bn yuan state-backed AI fund began investing this month. Robotics shares have also come under pressure: Unitree’s shares have halved since trading began in August, while demand for humanoid robots remains concentrated among government and research bodies.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.