Reuters: STAR50 down about 40% in under four months, wiping out some $480bn 8:00

Reuters: China's STAR50 has fallen ~40% in under four months, erasing about $480bn.

In an analysis published on 26 October (about 20:00 HKT), Reuters said the STAR50 index of AI and chip leaders has fallen about 40% in under four months, wiping out some $480 billion in market value, while the CSI 300 is about 20% below its June high. Citing Goldman Sachs, it said AI-related stocks account for about 42% of market capitalisation and 57% of turnover across A-shares and Hong Kong H-shares; traders cited high valuations, tax bills and the risk of foreign bans on Chinese data-centre equipment. Reuters separately reported the STAR50 fell 2.2% and the CSI 5G communications index 4% on 26 October. The CSRC did not reply to Reuters. The 27 October yuan fixing is due around 09:15; the A-share close will be added in the afternoon.