Chinese stocks are missing out on the global AI boom, with the MSCI China Index tumbling 15% this year, the worst performance globally after Indonesia. The index last week traded at its lowest level relative to the MSCI world index since the immediate aftermath of the September 11, 2001 attacks. The two biggest weightings, Tencent and Alibaba, have plunged more than 29%, wiping out a combined $337 billion. The downturn comes despite China's AI breakthroughs, such as DeepSeek, which had lured overseas investors back last year. Weak consumer spending, a preference for chipmakers over hyperscalers, and a regulatory crackdown on cross-border flows are weighing on the market, while neighboring South Korea, Taiwan, and Japan have seen benchmark indices gain between 17% and 99%.
Alibaba Group Holding Ltd
Apple Inc.
Astera Labs, Inc.
Alphabet Inc Class C
Futu Holdings Ltd
Goldman Sachs Group Inc
Tencent Holdings Ltd