China's SI stock index STAR 50 falls 40% in four months
Prepared by Sintelligent with the help of SI. Published in SI: . Updated: .
Part of China's SI market has become sharply cheaper, and investors disagree on whether it is the end of growth or a chance to buy.
According to Reuters, the STAR 50 index, which tracks technology companies on the Shanghai exchange, lost about 40% in less than four months, and its market value fell by roughly $480 billion. The reasons cited include high valuations, tax bills and threats of bans on Chinese equipment in data centers in the US and other countries. Fund manager Dong Baozhen said the bubble is "bursting"; Hong Hao of Lotus Asset Management warned the sell-off could deepen: STAR 50 trades at about 100 times earnings versus 30 for the Nasdaq 100. Goldman Sachs and BNP Paribas Securities, according to the same report, see buying opportunities. The Guardian cites a Bloomberg estimate that $2.4 trillion has been wiped off the Chinese market since May, and according to Goldman Sachs, SI stocks make up over 40% of the value of the Chinese and Hong Kong markets.
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