Chinese AI stocks lead global selloff as Star50 index drops 40%

Chinese tech stocks have become the biggest losers in the global AI selloff, with the Star50 Index plunging nearly 40% this half-year, making it the world's worst-performing major tech gauge. Major chipmakers MetaX and Moore Threads have each lost about half their value. The ChiNext index has fallen 36%, reversing a strong rally earlier this year when the Star50 surged 75% between April and June on policy optimism. Foreign outflows via the Hong Kong trading link reached an estimated 90 billion yuan in the third quarter, the largest in a year. The slump threatens Beijing's efforts to use equity markets to fund AI ambitions, as Chinese firms rely heavily on stock financing. Recent IPOs like CXMT and Yushu Technology have dropped sharply, though regulators met Thursday to discuss stabilization measures.