Source: CounterPunch
by Dean Baker
“It seems to have gotten relatively little attention here, but China’s AI stocks have taken a sharp dive over the last four months. Reuters put the plunge at 40% in the STAR50 index, which includes most of the country’s AI and tech-related companies. The article said this drop corresponded to a loss of $480 billion in market wealth. There are several important points about this plunge that should provide lessons for investors in the United States. The first and most obvious lesson is that sharp plunges in stock prices like this can happen. That shouldn’t really be news. … Another striking point about China’s crash is how little money is involved. None of us will ever see $480 billion, but this sum is trivial compared to the sums in play with the U.S. AI and tech companies.” (11/03/26)