China's AI stock rout deepens as STAR 50 slides 4% despite Beijing's $15bn liquidity support
Beijing announced new central bank swap operations on Monday, with 31 brokers and fund managers applying for more than 100 billion yuan, and urged tech firms to buy back shares; the Shanghai Composite fell 1% on Tuesday.
Why it matters
China's selloff shows the AI trade unwinding beyond the US. By late October the STAR 50, home to major chipmakers, had fallen roughly 40% from its midyear peak, erasing about $480 billion by Reuters' calculations, and the CSI 300 lost 8.5% in October, its steepest monthly drop in more than a decade. Analysts at 22V Research said the new measures look aimed at putting a floor under markets rather than engineering another rally. Watch whether the liquidity support stems the slide and how big tech buybacks respond.
Key facts
- STAR 50 slid 4% on Tuesday
- Shanghai Composite fell 1%; CSI 300 closed little changed
- 31 securities firms and fund managers applied for more than 100 billion yuan ($15 billion)
- CSI 300 fell 8.5% in October
- STAR 50 down roughly 40% from its midyear peak by late October, about $480 billion erased (Reuters)