July 2026 Tech Stocks Plunge, STAR 50 Index Down 30% from Peak, Nearly RMB 100B Outflow
Technology stocks plunged in July 2026, with the STAR 50 Index closing at 1,588.41 points on July 30, a 30% retreat from its early-July high of 2,255.25 points. Electronic chemicals, semiconductor, and component sectors each fell about 7%. Over the past three trading days, net outflow of major funds from semiconductors, communication equipment, components, and optical and optoelectronic sectors neared RMB 100 billion. Previously hot sectors such as optical communication, AI computing, and semiconductor equipment saw the heaviest capital outflows, reversing significant gains.
As of the close on July 30, the electronic chemicals, semiconductor, and component sectors led the declines, each falling about 7%. The STAR 50 Index dropped to 1,588.41 points after consecutive losses, a retreat of 30% from its high of 2,255.25 points in early July. In the past three trading days, the net outflow of major funds from the four technology sectors of semiconductors, communication equipment, components, and optical and optoelectronic sectors neared RMB 100 billion.
Optical communication, AI computing, and semiconductor equipment, which were popular sectors in the first half of the year, have recently become major areas of capital flight. The huge gains accumulated earlier were largely given back in just a few days, as technology stocks suffered a black July with sharp price declines.