[Beijing = E-Daily Lee Myeongcheol Correspondent] As South Korea’s KOSPI and KOSDAQ indices plummeted in the wake of a slump in U.S. tech stocks, stock markets across Greater China also fell. Changxin Memory Technology (CXMT), which had been a source of concern for South Korea and the U.S. amid growing negative sentiment toward the artificial intelligence (AI) industry, was also unable to escape the downturn.

According to China’s state-run Securities Times and other sources on the 15th, the Shanghai Composite Index and the Shenzhen Composite Index on the Chinese mainland closed down 1.59% and 2.64%, respectively, compared to the previous trading day. The CSI 300 Index, China’s leading benchmark index, also fell 1.23% during the same period. On the Hong Kong stock market, the Hang Seng Index and the Hong Kong H-Share Index are down by around 1%.

In the South Korean stock market, the KOSPI and KOSDAQ indices also plummeted by 7.57% and 7.65%, respectively, compared to the previous trading day.

The reason for the sharp, across-the-board decline in Asian stock markets today is largely due to negative factors originating in the U.S. The U.S. Consumer Price Index (CPI) for September, released last night, rose 3.7% year-over-year, exceeding both market expectations (3.6%) and the previous month’s increase (3.4%). Analysts say that expectations of interest rate hikes due to persistent inflation in the U.S. weighed on investor sentiment in the stock market.

Debt risks among AI technology companies also played a role, as concerns about the financial soundness of CoreWeave, a U.S. cloud computing firm, came to the fore.

As a general weakness in tech stocks persisted across the New York Stock Exchange, South Korea, and China, the stock price of Changxin Memory—once the largest company by market capitalization on the Chinese stock market—also fell.

On that day, the Chinese economic media outlet Di Yi Cai Jing reported that at 2:44 p.m. (local time), Changxin Memory’s stock price stood at 43.57 yuan, causing its market capitalization to fall below 3 trillion yuan (approximately 602 trillion won). As a result, the Industrial and Commercial Bank of China (ICBC) regained its position as the market leader.

Changxin Memory is the world’s fourth-largest and China’s largest DRAM manufacturer. It rose to the top spot in market capitalization immediately upon its listing on July 27, and by August 17, its market capitalization had reached 4.2 trillion yuan (approximately 843 trillion won). However, as its stock price fell over the course of about two months, its market capitalization dropped by as much as 1.07 trillion yuan (approximately 215 trillion won).

Changxin Memory recently announced that it could increase data storage capacity by applying its new “4F Square” technology to DRAM, a general-purpose memory semiconductor, putting companies like SamsungElectronics(005930), and SK hynix(000660) on edge. Last month, it continued to roll out new technologies, including an announcement by a key subsidiary regarding the mass production of a fifth-generation DRAM technology platform.

However, as tech stocks have been underperforming amid recent concerns about an “AI bubble,” Changxin Memory’s stock price appears to have been affected as well.

The Securities Times analyzed the situation, stating, “Share prices of several AI infrastructure-related stocks had previously risen to record highs, but as the capital market questions whether AI infrastructure development is sustainable, the stock prices of leading companies have recently been sluggish.” It added, “Concerns have also emerged that U.S. inflation in September exceeded expectations, leading to higher financing costs and potentially increasing the cost of data center construction.”