China’s AI boom turns to bust: Stocks suffer $480 billion wipeout as ‘now we see the bubble bursting’

China’s AI stock rally has unravelled, with the mainland STAR50 index dropping 40 per cent in less than four months and erasing about $480 billion in market value, Reuters reported.

The downturn has interrupted a two-year rally and challenged Beijing’s ambition to build a steadier stock market. The broader CSI300 index has fallen about 20 per cent from its June highs.