Two AI market corrections: overvaluation in China, debt risk in the US
AI has produced two different stock market corrections in 2026. In China, the STAR 50 has lost 43% since late June and trades below its level at the start of the year; in the US, the Nasdaq 100 is down 14% from its October peak, after its worst session since March 2020 on November 5. Both markets corrected an overvaluation worsened by politics, but overvaluation was greater in China and the risk to financial stability is greater in the US, where AI investment is increasingly financed with debt.
In 40 seconds
- China's STAR 50 is down 43% since late June and the Nasdaq 100 14% from its October peak
- The steepest falls are concentrated in chips: the STAR Chip loses 49% from its peak and the SOX 36%
- The STAR 50 traded at almost 250 times earnings; the Nasdaq 100 is around 30 times
Read the full story at Real Instituto Elcano
IASummary generated by artificial intelligence from a story by Real Instituto Elcano. It may contain errors: the original source prevails.
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