China's AI stock bubble burst, Reuters reported on October 26, 2026.
The STAR50 index fell 40 percent in less than four months.
About $480 billion in market value vanished in the fall.
A bubble means prices rise far above what firms earn.
The index still trades at 100 times past earnings.
High prices, tax bills and export curb fears all played a part.
AI shares made up 42 percent of China's market value.
Robot maker Unitree halved since it started trading in August.
The Nasdaq fell just 6 percent from its record high.
DeepSeek released a free tool to run AI models at lower cost.
New tech listings may slow, and state funds may buy more.
Read the full explainer on Rive News, with every number behind the fall.
Get the full breakdown, key numbers, and what happens next.
Read on Rive News