🚨ALERT🚨
China could be the FIRST country where the AI bubble BURSTS.
Its stock market, the second largest in the world, is now OFFICIALLY in a bear market.
Its blue-chip CSI 300 index has now fallen -20% from its peak.
Mainland stocks have lost $2.4T since May.
What caused it? AI.
Over the last 2 years, investors piled into Chinese AI stocks until they made up 42% of the entire market.
That frenzy sent new listings soaring.
GPU makers Moore Threads and MetaX jumped 400% and 700% in their debuts, and the robot maker Unitree IPO was oversubscribed 8,000 times.
At the peak, the STAR 50, China's AI index, was trading at nearly 250x earnings.
But earnings never caught up to prices, and investors started selling.
By the end of October, the index had fallen 40%, erasing $480B.
AI makers MiniMax and Zhipu were down more than -85%.
Unitree, Moore Threads, and MetaX were cut in half.
AI was too big to fall alone. It took the whole market down with it.
Even more, Morgan Stanley sees another 10–15% drop before the bottom.
$BTC
China could be the FIRST country where the AI bubble BURSTS.
Its stock market, the second largest in the world, is now OFFICIALLY in a bear market.
Its blue-chip CSI 300 index has now fallen -20% from its peak.
Mainland stocks have lost $2.4T since May.
What caused it? AI.
Over the last 2 years, investors piled into Chinese AI stocks until they made up 42% of the entire market.
That frenzy sent new listings soaring.
GPU makers Moore Threads and MetaX jumped 400% and 700% in their debuts, and the robot maker Unitree IPO was oversubscribed 8,000 times.
At the peak, the STAR 50, China's AI index, was trading at nearly 250x earnings.
But earnings never caught up to prices, and investors started selling.
By the end of October, the index had fallen 40%, erasing $480B.
AI makers MiniMax and Zhipu were down more than -85%.
Unitree, Moore Threads, and MetaX were cut in half.
AI was too big to fall alone. It took the whole market down with it.
Even more, Morgan Stanley sees another 10–15% drop before the bottom.
$BTC
