# China Chip Stock Pullback Drives Investor Fear to Four-Year High > Source: > Published: 2026-07-17 01:13:27+00:00 (Bloomberg) -- A measure of investor sentiment on China technology hardware is flashing its most bearish reading in over four years as the red-hot rally in chip stocks rapidly cools. Most Read from Bloomberg - [Thailand Scraps Plan to End Visa-Free Entry for Indian Tourists](https://www.bloomberg.com/news/articles/2026-07-14/thailand-drops-plan-to-end-visa-free-entry-for-indians-after-hit-to-tourism?utm_campaign=bn&utm_medium=distro&utm_source=yahooUS) - [Beckham's IM8 Gets $1 Billion From General Catalyst for Growth](https://www.bloomberg.com/news/articles/2026-07-14/beckham-s-im8-gets-1-billion-from-general-catalyst-for-growth?utm_campaign=bn&utm_medium=distro&utm_source=yahooUS) - [Google Gemini Launch Delayed as Tech Falls Short of Internal Goals](https://www.bloomberg.com/news/articles/2026-07-16/google-gemini-launch-delayed-as-tech-falls-short-of-internal-goals?utm_campaign=bn&utm_medium=distro&utm_source=yahooUS) - [CIA Says AI Drones Give Russian Troops Only 30 Minutes to Live](https://www.bloomberg.com/news/articles/2026-07-15/cia-says-ai-drones-give-russian-troops-only-30-minutes-to-live?utm_campaign=bn&utm_medium=distro&utm_source=yahooUS) - [Chip Stocks Get Hit as AI Spending Anxiety Builds: Markets Wrap](https://www.bloomberg.com/news/articles/2026-07-15/stock-market-today-dow-s-p-live-updates?utm_campaign=bn&utm_medium=distro&utm_source=yahooUS) The Star 50 Index's fear/greed indicator, which measures selling strength relative to buying strength, has fallen to its most negative level since April 2022. The semiconductor-heavy gauge has dropped 16% from its June record high as investors position for the blockbuster listing of CXMT Corp. The reversal in sentiment also comes as concerns grow over stretched valuations following a record-setting quarter for the index. A recent pullback in high-flying memory shares globally has amplified those fears, after massive rallies drove a surge in volatility. For some investors, the sheer scale of CXMT's $9.8 billion initial public offering — the nation's second-largest ever — is itself a warning sign. Large, highly anticipated listings have often coincided with near-term market peaks. Meanwhile, China's plans for tech self-sufficiency will be on display as the World AI Conference kicks off in Shanghai on Friday with a keynote speech from President Xi Jinping. Most Read from Bloomberg Businessweek - [Credit Card Holders Are Using 'Friendly Fraud' to Get Back at Retailers](https://www.bloomberg.com/news/articles/2026-07-13/credit-card-holders-are-using-friendly-fraud-to-get-back-at-retailers?utm_campaign=bw&utm_medium=distro&utm_source=yahooUS) - [How China's 'Temu Range Rover' Became Britain's Top-Selling Car](https://www.bloomberg.com/news/articles/2026-07-16/chery-s-temu-range-rover-highlights-china-s-ascent-in-uk-car-market?utm_campaign=bw&utm_medium=distro&utm_source=yahooUS) - [Job Hunters Are Using AI to Cheat in Interviews, and Failing at the Office](https://www.bloomberg.com/news/articles/2026-07-14/ai-tools-can-help-job-hunters-cheat-on-interviews-and-coding-tests?utm_campaign=bw&utm_medium=distro&utm_source=yahooUS) ©2026 Bloomberg L.P.