Chinese markets lose trillions as race for AI supremacy with US takes its toll

China's stock markets have lost about $2.4tn since May, with the STAR 50 Index down 40% since June, as AI stocks make up over 40% of stock market value in China and Hong Kong, according to Bloomberg and Goldman Sachs. Weak consumer demand, thin profit margins, US rate rises and Western restrictions on Chinese technology are driving the sell-off, while a 60bn yuan state-backed AI fund began investing this month. Unitree's shares have halved since trading began in August, and no major Chinese AI IPOs are on the horizon as Anthropic prepares a planned listing.