Asian Markets Slump as AI Investment Doubts Hit Chinese Tech Stocks

Asian stock markets are experiencing significant declines, particularly in technology shares, with Chinese tech companies facing sharp valuation drops. The STAR50 index in Shanghai has fallen over 40% from its summer peak, while Taipei and Seoul markets have also lost ground. Chinese digital infrastructure investments are estimated at only one-sixth of US levels in 2026, according to Rhodium Group. Alibaba co-founder Joe Tsai noted Chinese firms lack capital compared to American giants like Amazon and Meta. Humanoid robotics companies like Unitree face questions about commercial demand versus government-backed purchases. Chinese optical module and circuit board makers, including Zhongji Innolight and Victory Giant Technology, have seen valuations collapse despite solid earnings. Memory producer CXMT remains above its IPO price. New US restrictions on robots and optical modules add political risk to companies integrated in global supply chains.