Chinese Tech Stocks Significantly Declined

Chinese tech equipment manufacturers' stocks fell: strong quarterly results did not offset concerns about fundamental indicators and weak sentiment around AI globally, Bloomberg reports.

STAR 50, which has a significant share of chipmakers, dropped 4.6% on Thursday after a 2.5% rise the previous day. AI chip manufacturer Moore Threads plummeted 13%, even though sales grew nearly 1,800% year-on-year for the quarter ending September. Memory manufacturer Biwin Storage fell 14% after more than a 500% profit increase. ChiNext lost up to 3.9%.

For the month, STAR 50 lost nearly 20% and fell to its lowest level since September 2025 amid concerns of overvaluation and fierce domestic competition. Even after the sell-off, valuations remain high: Star50 trades at about 38 times forward earnings compared to less than 5 for Kospi and 20 for Nasdaq 100.

The sell-off became part of the weakness in global tech stocks: Samsung Electronics fell more than 5% after a miss in its chip division's profits, Alphabet dropped 10% in extended trading after weak sales. Google's supplier Zhongji Innolight fell 7.4%.

"With weak fundamental support, investors viewed the rebound as a short-term trading opportunity rather than a sustainable recovery," said Fu Zhifeng of Shanghai Chengzhou Investment Management. "Misses by Samsung and Alphabet also weigh on sentiment."