China’s technology stock selloff is undermining President Xi Jinping’s effort to channel household savings into the tech sector as an alternative to property. The SSE Star 50 has fallen roughly 40% in under four months, erasing about $480 billion in value across AI, electric-vehicle, and semiconductor-linked companies, prompting state intervention to stabilize the market. Elevated valuations, intensifying competition, weak domestic demand, and the ongoing property crisis have weighed on investor confidence, raising questions about Beijing’s ability to build a more durable equity market to fund AI ambitions.