# Chinese AI stock trade remains intact despite 10% correction from jumbo IPO, Fed jitters > Source: > Published: 2026-07-15 06:34:00+00:00 # Chinese AI stock trade remains intact despite 10% correction from jumbo IPO, Fed jitters Global investors’ diversification into Chinese assets coupled with strong AI earnings could make the pullback in tech stocks short-lived [Zhang Shidong](/author/zhang-shidong)in Shanghai [Chinese technology stocks](https://www.scmp.com/business/markets/article/3360310/chinese-hard-tech-giants-see-value-surge-first-half-global-investors-pour-capital?module=inline&pgtype=article)is a just blip that is unlikely to disrupt the secular bull run on the [artificial intelligence](https://www.scmp.com/topics/artificial-intelligence?module=inline&pgtype=article)(AI) plays, according to fund managers and equity analysts. A decline of more than 10 per cent in the tech-centric Star Market 50 Index over the last two weeks was a reaction to a flurry of short-term tailwinds, according to domestic brokerages, HSBC Jintrust Fund Management and UBS Group. [ChangXin Memory Technologies’ mega stock offering](https://www.scmp.com/tech/article/3360615/china-memory-giant-cxmt-valued-us85-billion-record-shanghai-ipo?module=inline&pgtype=article)and concerns about possible monetary tightening by the Federal Reserve. However, both financial institutions said these negatives could be overcome and well digested by strong earnings from AI companies and global investors’ diversification into Chinese assets. “We still like AI stocks and AI-linked sectors, such as semiconductors,” said Chen Ping, a money manager at HSBC Jintrust Fund in Shanghai. “Earnings from growth stocks representative of AI are generally strong now. AI capital expenditure may maintain an about 50 per cent annual compound growth rate through 2030. AI-pulled demand for domestic semiconductor products is showing up in China.”