China’s AI bubble has already burst. Its AI-heavy STAR50 index has fallen 40%, wiping out $480B.
Some Chinese AI chip companies have lost half their value.
Even after the crash, the index still trades at 100x earnings, down from nearly 250x. In comparison, the Nasdaq 100 trades at around 30x.
https://www.reuters.com/world/china/china-ai-bubble-has-already-burst-2026-10-26/
