Chinese markets lose trillions as race for AI supremacy with US takes its toll
Source: The Guardian ·
Lack of profits and the threat posed by western countries are raising concern about the sustainability of Beijing’s AI boomTrillions of dollars have been wiped from China’s stock markets in recent months amid increasing anxiety about the future of artificial intelligence, as Beijing races against the United States for dominance in the sector.The STAR 50 Index, which tracks technology and…
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Trillions of dollars have been wiped from China’s stock markets in recent months amid increasing anxiety about the future of artificial intelligence, as Beijing races against the United States for dominance in the sector. The STAR 50 Index, which tracks technology and innovation companies on the Shanghai stock exchange, has plunged 40% since June. Other indexes of major companies dropped by about 20% over the same time period. The precipitous drop has wiped out $2.4tn from the Chinese stock market since May, according to Bloomberg. AI stocks account for over 40% of the stock market value in China and Hong Kong, according to Goldman Sachs, meaning that any dent in value will send shockwaves across the whole domestic market. The fall suggests that despite the government’s best efforts to boost China’s technology industries, particularly those which harness the power of AI, the domestic economy does not have the power to sustain a booming market. The Chinese government has invested…