China AI bubble wipes out $480B as STAR50 falls 40%, still trading at 3.3x Nasdaq 100 multiple
luisdans · x · 2026-10-27
Yahoo Finance reports China's AI stock rally has collapsed, erasing $480B as the STAR50 AI/chip index fell 40% from its July high, pushing the CSI 300 into a bear market.
- Per Goldman Sachs, AI stocks are 42% of China's market cap and 57% of trading volume
- STAR50 still trades at 100x trailing earnings (peak 250x) vs 30x for the Nasdaq 100 — a 3.3x premium even after the crash
- Analysts cite stretched prices, tax bills, and risk of US bans on Chinese data-center equipment
- US AI stocks are barely dented (Nasdaq 6% off highs); this week's Microsoft, Alphabet, and Amazon earnings will test the gap — Alphabet guides $195–205B 2026 capex, Amazon $220B
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