Updated
Updated · Financial Times · Jul 30
Chinese Stocks Head for Worst Month in 10 Years as AI Sell-Off Erases $34 Billion
Updated
Updated · Financial Times · Jul 30

Chinese Stocks Head for Worst Month in 10 Years as AI Sell-Off Erases $34 Billion

3 articles · Updated · Financial Times · Jul 30

Summary

  • China’s CSI 300 fell 1.1% on Thursday and is down 8.6% for July, putting mainland stocks on course for their biggest monthly drop since January 2016.
  • AI-linked shares led the slide after weaker-than-expected US tech earnings hit confidence in data-centre demand; China’s CSI AI index dropped 5.8%.
  • Innolight, Eoptolink and Cambricon lost about $34 billion in combined market value, while Innolight’s Hong Kong shares fell as much as 10% on their secondary-listing debut.
  • The rout marks a sharp reversal from Monday’s CXMT IPO surge, when the chipmaker jumped 466% and state-backed buying helped prop up Chinese indexes.
  • The sell-off also mirrors a broader regional unwind in AI trades, underscoring how closely Chinese AI stocks are tracking global tech sentiment.

Insights

Why are China’s AI hardware stocks plunging while internet giants hold up better—and what does that say about the next AI trade?
Can state-backed market support steady Chinese AI shares, or are investors losing faith in the sector’s near-term returns?