China's STAR 50 tech index has plunged 40% since June as the broader bear market intensifies, erasing trillions of dollars from Chinese equity markets. The sharp decline underscores growing investor unease over valuations in the country's technology sector. Reuters reported that China's AI bubble has "burst," while Morgan Stanley warned that Chinese stocks face further downside before bottoming out. The combined signals point to continued pressure on one of the world's most-watched growth markets.