China Hardware Tech Stocks Drop ~30% in Q3, Marking Worst Quarterly Performance
nashnova research
The STAR 50 and ChiNext indices have fallen roughly 30% since late June, with Biwin Storage and Moore Threads down over 40% — a global AI-profitability rout compounded by geopolitical pressure, and Beijing's stimulus has failed to turn the tide as the CSI 300 extends its losing streak to eight weeks, the longest since 2012.
How bad is the damage — and who got hit hardest?
The STAR 50 and ChiNext indices have each dropped about 30% since late June, marking the worst quarterly performance for China's tech-hardware sector in Q3 2026.
Biwin Storage Technology and Moore Threads Technology led the sell-off, each falling more than 40%.
This means → the market did not sell evenly — it concentrated fire on the highest-valued, still-unprofitable AI hardware names.
What triggered the plunge?
The catalyst was a global tech sell-off in July, as investors began questioning whether AI companies can convert high valuations and heavy capex into actual earnings.
Vey-Sern Ling, Managing Director at Union Bancaire Privée, noted that these A-share tech companies carry extreme valuations and most are loss-making, so "pullbacks tend to be far more severe."
China faces an additional layer of geopolitical risk — the U.S. transceiver bill, for example. In plain terms = Chinese tech stocks are absorbing global sentiment *plus* sanctions pressure on top.
Beijing stepped in — did it work?
Authorities rolled out confidence-boosting measures, and the PBOC launched targeted lending programs aimed at infrastructure and tech.
Markets shrugged it off. The CSI 300 fell another ~2% this week, stretching its losing streak to eight consecutive weeks — the longest since 2012.
This means → the policy signal has been sent, but capital is not buying it; investors want to see earnings data, not loan quotas.
What comes next?
China is heading into a public holiday, and markets will soon enter a trading pause.
Whether the AI trade can rebuild consensus after the break is the key inflection point for judging if the sell-off has bottomed.
Put simply = the holiday is a dividing line — if money keeps leaving when markets reopen, this downturn is far from over.
市场有风险，内容仅供研究参考，不构成投资建议。