China halts IPOs as AI stock rout erases $480 billion

Following a sharp fall in AI and chip stocks that has wiped about $480 billion off the STAR 50 index, China has reportedly stopped approving new share listings to calm its falling stock market . Everyday investors who bought into the two-year rally are feeling the pain, and global markets are watching to see if U.S. tech could face the same pressure. Why have China’s AI stocks crashed? The STAR 50 is a Shanghai index of China’s homegrown chip and AI companies . It has lost about 40% since peaking in July, wiping out roughly $480 billion in market value. The wider CSI 300 index is down about 20% from its June high. It fell 8.5% in October alone, its worst month in more than ten years.

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