Global Tech Rout Erases Gains in China’s AI Stocks, Jolts Mutual Funds

A global sell-off in technology stocks has erased early-year gains in some of China’s most sought-after artificial-intelligence and semiconductor names, hitting domestic mutual funds that had built concentrated positions in the sector.

The STAR 50 Index, which tracks major technology companies listed in Shanghai, has fallen 30% from its early-July peak of 2,255.25 to 1,588.4 at the close on Thursday. Over the past three trading days, nearly 100 billion yuan ($14.8 billion) has flowed out of semiconductor and optical-communication stocks.