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first_img China's artificial intelligence stocks have significantly declined, with the STAR50 dropping 40% in the past four months

Reuters reported on October 26 that amid fluctuations in global tech stocks, Chinese artificial intelligence and semiconductor-related stocks have already declined. The STAR50 index, dominated by mainland artificial intelligence and semiconductor leaders, has dropped 40% in less than four months, with a market value evaporating by about $480 billion. The CSI 300 index has fallen about 20% from its June peak, interrupting nearly two years of gains. Beijing fund manager Dong Baozhen said: The stock market has evolved into a speculative frenzy bull market, and now the bubble is bursting. Traders noted that the decline does not have a clear single trigger factor; high prices, tax bills, and the possibility of the U.S. or other countries banning Chinese equipment from entering data centers have all had an impact. During the same period, the Nasdaq has retreated 6% from its record high three weeks ago.Goldman Sachs stated that AI stocks account for 42% of China's market value and 57% of the trading volume of mainland A-shares and Hong Kong H-shares. When the robotics company Yushu went public, retail investors oversubscribed by about 8,000 times, and since trading began in August, its stock price has fallen by about half; chip company Changxin Storage has dropped more than a quarter in the past month. Mu Xi Integrated Circuit and Moore Threads saw their stock prices rise by about 700% and 400% respectively on their first day of trading last year, but have also fallen by about half since July. Optical module companies Zhongji Xuchuang and Guangxun Technology have dropped about 60% from their June and July peaks, partly due to the U.S. moving towards banning these companies from supplying to U.S. data centers. Hainan investor Chen Wensheng said: He bought Yushu because he felt official support and that there were state-owned background funds investing, but he is currently suffering losses with friends.The STAR50 is currently still about 100 times its past earnings, having fallen from a high of nearly 250 times, with investors comparing it to the Nasdaq 100's price-to-earnings ratio of about 30 times. Hong Hao, Managing Director and Chief Investment Officer of Lotus Asset Management in Hong Kong, said: The current situation will cause many companies trying to go public to pause. Leo Wang, a partner at Beijing Qianchuang Capital, said: Overemphasizing the market capitalization weight of tech companies in major indices will create serious bubbles in certain industries and siphon off funds from other sectors. Wang Zhuo, a partner at Shanghai Zhuozhu Investment Management, said: Chip manufacturers and AI suppliers will ultimately fall into price wars like other Chinese manufacturers. HSBC Research stated that Asian funds have generally been selling over the past three months but are still overweight in China; Goldman Sachs' updated recommendation list this month includes Zhongji Xuchuang and Changxin Storage. The China Securities Regulatory Commission did not immediately respond to Reuters' inquiries; Chairman Wu Qing met with market participants earlier this month to hear suggestions for improving the capital market.

first_img The State Council issued an opinion to mitigate the impact of artificial intelligence applications on employment substitution

On October 23, the General Office of the State Council issued the "Opinions on Adapting to the Development of Artificial Intelligence Technology to Support the Construction of Employment-Friendly Development Models" (Guo Ban Fa [2026] No. 29). The document proposes to adapt to the development of artificial intelligence technology, enhance the positive effects of job creation, empower traditional positions, and mitigate the impact of job replacement.The opinions point out that the role of artificial intelligence should be leveraged to improve the employment environment, enhance occupational safety levels, and improve work quality and efficiency, with priority given to promoting applications in positions with labor shortages and high-risk environments; it is essential to cautiously manage the scope, intensity, and pace of artificial intelligence applications in labor-intensive industries to minimize the impact on workers. The document also encourages enterprises to explore the establishment of an unemployment buffer period system, to inform affected workers in advance during the large-scale promotion of artificial intelligence applications, and to provide support for job transition and transformation.The opinions also outline deployments in areas such as strengthening job creation effects, constructing employment-friendly upgrade paths, enhancing workers' digital literacy and employment capabilities, promoting artificial intelligence-enabled employment policy services, improving workers' rights protection and social security, and perfecting employment monitoring, early warning, and risk response mechanisms. The document is dated October 16, 2026, and is marked for public release.

first_img U.S. Treasury Secretary Janet Yellen: Artificial Intelligence cannot be compared to the Internet bubble

According to attendees, U.S. Treasury Secretary Bessent stated during a closed-door meeting on Wednesday that there are no systemic issues in the artificial intelligence industry, and it cannot be compared to the internet bubble at the turn of the century. Bessent expressed an optimistic attitude towards this cutting-edge technology, believing that technological advancements will benefit the United States, but also acknowledged that data centers and AI companies have not done enough to explain the benefits of this technology to the average American.The closed-door meeting attracted over a hundred executives and investors from the financial industry, with ticket prices starting at $7,500 and top sponsorship packages costing up to $100,000. Proceeds from the meeting are used for charity. This year marks the 14th edition, having raised nearly $72 million in total. Bessent has publicly predicted multiple times that the development of artificial intelligence will significantly increase productivity and greatly boost U.S. economic growth. Currently, there is growing concern in American society regarding investments in artificial intelligence and data centers, leading to a sell-off of AI stocks.Former U.S. Treasury Secretary Yellen pointed out that she always confirms the presence of the media and issues public reports when she gives speeches. Bessent's office responded that his views expressed at the closed-door meeting had been publicly stated before and do not involve issues of transparency; in addition to artificial intelligence, he also discussed his views on the U.S. economy. More and more regions are beginning to oppose the construction of data centers, which is affecting the upcoming U.S. midterm elections, leading to a decline in support for U.S. President Trump and the Republican Party.
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