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Chinese markets lose trillions as race for AI supremacy with US takes its toll
The Guardian ^ | 10/27/2026 | Betsy Reed

Posted on 10/27/2026 11:02:20 AM PDT by Vendome

Lack of profits and the threat posed by western countries are raising concern about the sustainability of Beijing’s AI boom

Trillions of dollars have been wiped from China’s stock markets in recent months amid increasing anxiety about the future of artificial intelligence, as Beijing races against the United States for dominance in the sector.

The STAR 50 Index, which tracks technology and innovation companies on the Shanghai stock exchange, has plunged 40% since June. Other indexes of major companies dropped by about 20% over the same time period.

 The precipitous drop has wiped out $2.4tn from the Chinese stock market since May, according to Bloomberg.

AI stocks account for over 40% of the stock market value in China and Hong Kong, according to Goldman Sachs, meaning that any dent in value will send shockwaves across the whole domestic market.

(Excerpt) Read more at theguardian.com ...


TOPICS: Business/Economy; Foreign Affairs; Government; News/Current Events
KEYWORDS: cookie; crumble; fortune
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1 posted on 10/27/2026 11:02:20 AM PDT by Vendome
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To: Vendome

Morgan Stanley warned today that Chinese equities could fall another 10–15% before reaching a bottom, based on valuations observed during previous market downturns.

https://www.msn.com/en-xl/money/other/china-stock-sell-off-could-erase-another-15-in-value-morgan-stanley-says/ar-AA2g8Y4C


2 posted on 10/27/2026 11:04:34 AM PDT by Vendome (I've Gotta Be Me https://youtu.be/wH-pk2vZG2M)
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To: Vendome

How do we monetize AI? Who needs it, and for what?


3 posted on 10/27/2026 11:04:55 AM PDT by ComputerGuy
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That’s what happens when you don’t call it SI.


4 posted on 10/27/2026 11:06:09 AM PDT by proust (All posts made under this handle are, for the intents and purposes of the author, considered satire.)
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To: Vendome

China gave us Qwen3.8:27b for FREE. It’s fantastic ! Personally I don’t care what happens to the AI market after this :)


5 posted on 10/27/2026 11:09:24 AM PDT by libh8er
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To: Vendome

You have to remember that in ccp mainland china, it’s all about the graft. Lying and theft, add in payola and bribery....

They will screw over their own and will do worse to everyone else.


6 posted on 10/27/2026 11:11:12 AM PDT by BFW
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To: Vendome

When the crash comes to the US, and it will, it will leave a couple trillion is construction bonds hanging in the wind.

Enough to change everything you now know once ir ripples through the US and world economies.


7 posted on 10/27/2026 11:14:58 AM PDT by Mariner (War Criminal #18)
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To: ComputerGuy

All this Data Center nonsense was all designed to damage USA AI and give the market to China.
They did the same thing with (5G causing brain cancer) trying to steal the market from Qualcomm-Apple-Intel.

As with any new technology, it takes a while to monetarize it.
Amazon.com took about 10 years to fully appreciate.


8 posted on 10/27/2026 11:15:42 AM PDT by Zathras
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To: Zathras

Roger that. Thanks.


9 posted on 10/27/2026 11:22:05 AM PDT by ComputerGuy
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To: Mariner

The US will recover. The US does a good job at recovering from bubbles.


10 posted on 10/27/2026 11:29:47 AM PDT by Jonty30 (Male simping and female promiscuity is the same thing. Resources without reciprocation.)
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To: ComputerGuy

“Who needs it, and for what?”

My son-and-law eats it up. He has an account with Chatgpt and he pumps into it everything about what going on with his business. Then he asks it to, say, produce the agenda for a meeting.


11 posted on 10/27/2026 11:44:19 AM PDT by cymbeline
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To: Vendome

I remember earlier this year when a Chinese company claimed to have made a breakthrough and US stocks tumbled.

Now their lies exposed, they are falling behind.


12 posted on 10/27/2026 11:44:52 AM PDT by packrat35 (“When discourse ends, violence begins.” – Charlie Kirk, and they killed him anyway)
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To: ComputerGuy

AI is used in almost everything nowadays. YOU may not notice it, but it is everywhere.


13 posted on 10/27/2026 11:45:41 AM PDT by packrat35 (“When discourse ends, violence begins.” – Charlie Kirk, and they killed him anyway)
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To: packrat35

yep

They claimed their Temu version of AI was cheaper and faster....

The only thing of any lasting quality China ever made was Covid....


14 posted on 10/27/2026 11:46:58 AM PDT by Vendome (I've Gotta Be Me https://youtu.be/wH-pk2vZG2M)
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To: ComputerGuy

How do we monetize AI? Who needs it, and for what?

~~~

Now YOU are asking the right questions!

Are you sure you want to go down that rabbit hole?

Let me ask you a similar question: Why do you think there are so many powerful interests trying soooooo hard to get everyone to use their cloud services?

Apple, Microsoft, Google, Amazon, Meta etc.

The monetization is not in the services that they provide. That is the hook.
Knowledge is power!

If you can get billions of people telling you what they are thinking, what they want answers to, what they are interested in, and what they are working on, and you can score it and data-mine it in real time, then you have information that in the past used to take researchers and pollsters thousands of man-hours to acquire and it still would never have been as accurate as this.

Want to be able to recognize trends... instantly?

Want to know where markets are going, what people are needing or running out of, complaining about, raving about, watching or listening too and commenting on?

Cloud storage is fantastic, but it doesn’t put you on the leading edge. AI does.

The secret is not what is happening on the front end, where the users are. The secret is what is happening on the back end.


15 posted on 10/27/2026 11:49:31 AM PDT by z3n (Kakistocracy)
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To: Vendome

It is not as easy to develop technology than to steal it.


16 posted on 10/27/2026 11:57:05 AM PDT by bray (Thank God for Israel)
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To: Vendome

I wouldn’t call COVID a quality thing...


17 posted on 10/27/2026 11:59:07 AM PDT by packrat35 (“When discourse ends, violence begins.” – Charlie Kirk, and they killed him anyway)
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To: packrat35

I should have said “durable”


18 posted on 10/27/2026 12:13:53 PM PDT by Vendome (I've Gotta Be Me https://youtu.be/wH-pk2vZG2M)
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To: Zathras

“All this Data Center nonsense was all designed to damage USA AI and give the market to China.”


Absolutely correct - China constantly manipulates public opinion to slow down our industry, high-tech or otherwise. If they can’t steal something (or not yet, anyway), then delaying our progress gives them more time to either catch up or to steal (or both). China is for China, and has no moral scruples. The shame of it is that this country REPEATEDLY falls for their manipulation, and we proceed to hamper our own industry. Unfortunately, it’s an easy sell, because the Deep State has ensured that most people can’t do math, understand science/technology and cannot do much in the way of critical thinking - plus we have a core of 30% of the population that is basically pure socialist, so if anyone or any company is going to make money doing anything, they are reflexively opposed to it.

This is a large part of the reason why Musk is going to ship tens of thousands of tons of chips and associated hardware into LEO - to get away from these people and their influence.


19 posted on 10/27/2026 12:42:12 PM PDT by Ancesthntr ("The right to buy weapons is the right to be free." The Weapons Shops of Isher)
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To: Vendome

Some scapegoats’ families are going to receive a bill for a bullet.


20 posted on 10/27/2026 1:00:15 PM PDT by LouAvul (They're doing it again because we didn't hang them the first time.)
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