The STAR 50, Shanghai’s index of AI and chip companies, has fallen 40% from its July high, erasing about $480 billion in market value over roughly four months, according to Reuters. Losses depended on purchase timing, and state-backed investors reportedly sold into the rally, a sign policymakers may have wanted to cool the boom. Goldman Sachs estimates AI stocks make up 42% of China’s market value and 57% of its trading, and the STAR 50’s P/E, once near 250, now sits around 100 versus about 30 for the Nasdaq 100. The KraneShares STAR 50 ETF (KSTR) fell 42.63% from the June 30 close through noon Oct. 28 and is 0.27% lower for the year, while the Invesco QQQ Trust (QQQ) is still up 17.6% year to date. Morgan Stanley forecasts offshore Chinese stocks could fall another 10% to 15% before bottoming.
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Keywords
Chinaartificial intelligenceNVDAsemiconductorsQQQ
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
▼ Likely negativeNvidia
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/27/2026 | 217.94 |
| Change that session | +0.90% |
QQQ
▼ Likely negativeInvesco QQQ Trust
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/27/2026 | 721.25 |
| Change that session | +1.27% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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