GoKawiilChinese AI stocks plunge as valuations, tax and export-ban fears mount
A sharp selloff has hit China's AI-related equities, with Goldman Sachs estimating such stocks make up 42% of total market capitalization and 57% of trading turnover. Traders cited elevated valuations, new tax bills, and fears that foreign governments could restrict exports of data center equipment to China as triggers, though no single catalyst was identified. Investment managers quoted by Reuters described the pullback as the bursting of a bubble built on overweighting tech firms in major indexes.