As global enthusiasm for AI-related stocks cools, Chinese technology shares have come under heavy pressure. The STAR 50 Index has fallen nearly 40% over the past six months, making it one of the worst-performing major technology indexes worldwide. Chipmakers MetaX Integrated Circuits Shanghai Co. and Moore Threads Technology Co. have each lost about half their market value over the same period.
STAR 50 falls nearly 40% in six months
The STAR 50, a key gauge of China’s technology sector, is weighted toward companies in integrated circuits, software and advanced manufacturing. Its recent decline points to weaker demand for AI-linked stocks globally and growing pressure on valuations across the sector.
The index’s steep six-month drop marks a sharp loss of momentum in trades built around AI, semiconductors and other technology themes. Its performance has also left China’s technology sector lagging in comparisons with major global technology markets.
MetaX and Moore Threads lose about half their value
Shares in MetaX Integrated Circuits Shanghai and Moore Threads Technology have both fallen about 50% over the same period. The companies are part of China’s listed semiconductor sector, and their declines reflect selling pressure on AI hardware and chip stocks.
Chipmakers can be particularly sensitive to shifts in AI-related trading. When investors reassess growth expectations for the AI supply chain and the valuations attached to its companies, semiconductor stocks can be among the first to feel the impact. The sharp falls in both companies have added to the broader retreat in STAR Market technology shares.
Market support for technology firms faces a test
China has long sought to use its capital markets to support technology development and broaden financing for sectors including AI and semiconductors. The pullback in the STAR 50 puts that role under pressure. Listed companies can still raise capital through equity markets, but falling share prices can weaken their financing capacity and affect investors’ assessment of their growth prospects.
The clearest signs of the downturn so far are in index and share-price performance: the STAR 50 is down nearly 40%, while the market value of MetaX and Moore Threads has roughly halved. Those moves show how the cooling global AI trade is being reflected in China’s stock market.