China AI Bubble Bursts: $480 Billion Gone, So Why Is Bitcoin Not Crashing?

A number has been doing the rounds on social media: a trillion-plus yuan “wiped out from China’s stock market today.” The viral version is wrong. The real version is worse, and it took four months instead of one afternoon. China’s STAR50 index, the Shanghai board that tracks the country’s AI and semiconductor leaders, has fallen roughly 40% from its July peak, erasing about $480 billion in market value. The blue-chip CSI 300 has slipped into a bear market, down about 20% from its June high, and on Tuesday it hit a 14-month low as tech selling deepened yet again.