Beijing Moves to Support Falling Chinese AI Shares

Chinese officials this week reactivated liquidity-injection tools aimed at encouraging share purchases and boosted trading by state-backed investment funds, according to local media reports cited by AFP. On Tuesday, net inflows into nine exchange-traded funds commonly used by Beijing to prop up the market reached a near-record 120 billion yuan, or about $18 billion, targeting tech stocks in particular, according to Bloomberg data.

The moves follow steep falls in Chinese AI stocks. Shares of Unitree Robotics are down 40 percent from their peak on the day of its Shanghai debut in August. Chipmakers Moore Threads and MetaX have each dropped about 50 percent over the past six months, while Shanghai's tech-focused Star50 index is down about 6 percent over the same period.

The Financial Times reported this week that Chinese regulators had told banks to halt company listings to boost market liquidity. Saxo Markets strategist Charu Chanana said investors had been concerned about weak domestic demand, intense competition and disappointing earnings, but that fresh policy support and lower valuations were drawing them back to the sector.