Kathmandu: Chinese artificial intelligence (AI) and semiconductor companies have experienced a sharp decline in share prices amid growing competition with the United States. Investors have been affected by concerns over excessive AI company valuations and the possibility of declining market demand. Fears of potential US restrictions have also weakened investor confidence, contributing to the significant market downturn.
China’s major technology index, the STAR 50, has fallen by around 40% since June. Meanwhile, the Chinese stock market is reported to have lost approximately US$2.4 trillion in market value since May.
Although the Chinese government continues to invest heavily in AI, weak domestic demand and increasing pressure on corporate profits have created additional challenges. The possibility of further US restrictions has also made investors more cautious about investing in Chinese technology companies.
