On September 4th, at the opening of the A-share market, Chinese AI giant Hanwuji once again plummeted, dropping by more than 13% at one point. Compared to the previous day, the company’s market value evaporated over 69.4 billion yuan.
According to Jiemian News, on September 4th, Hanwuji dropped by more than 13%. By the morning close, the stock had fallen by 11.90% to 1,237.83 yuan per share, with a market value of 517.85 billion yuan. This equals a staggering 69.4 billion yuan loss compared to the previous day.
Since surpassing Kweichow Moutai to become the highest-priced stock on August 28th, Hanwuji has undergone multiple days of adjustment, retracting over 20% from its peak price of 1,595.88 yuan.
Daily Economic News reported that Hanwuji’s recent adjustments are related to an index adjustment announcement. On August 29th, the Shanghai Stock Exchange announced that according to index rules, the Shanghai Stock Exchange and China Securities Index Co., Ltd. decided to adjust the constituents of the Sci-Tech Innovation 50 Index, effective after the market closes on September 12, 2025. Hanwuji’s weight in the Sci-Tech Innovation 50 Index will passively adjust from the current approximately 15% to 10%.
Index-related funds such as the Sci-Tech Innovation 50 Index have been important drivers for Hanwuji’s soaring performance. Hanwuji’s semi-annual report shows that Huaxia CSI ChInext 50 ETF and E Fund CSI ChInext 50 ETF are the fourth and fifth largest shareholders of Hanwuji, with a combined stake of over 4.7%.
Previously, on August 27th, Hanwuji briefly became the highest-priced A-share stock, only to be overtaken by Moutai within 7 minutes of trading. On the following day, August 28th, Hanwuji again surpassed Moutai to become the “top-priced A-share stock.”
Multiple media outlets cited analyses pointing out that Hanwuji’s valuation is extremely high, with metrics such as rolling P/E ratio, PEG ratio, and P/B ratio far exceeding industry averages, posing risks of overvaluation.
According to a Tencent News report, Hanwuji has been included in several important indices such as the Sci-Tech Innovation 50, SSE 50, CSI 300, FTSE China A50, attracting index funds to buy in, contributing to the surge in Hanwuji’s stock price.
On the evening of August 28th, Hanwuji issued a stock trading risk warning notice, stating that there is a risk of stock prices deviating from the current fundamentals, and investors participating in trading may face greater risks.
East Sea Securities analysis suggests that the increasing demand for industrial computing power domestically, coupled with the scarcity of domestic cloud AI chips, has driven Hanwuji’s high revenue and net profit.
Amid the backdrop of U.S. restrictions on AI chip exports to China, Chinese companies are facing greater difficulty in obtaining NVIDIA chips. Hanwuji is the only listed AI chip company in China, making it a scarce target and a key reason for the company’s popularity.
Many experts believe that fundamentally, the Chinese stock market is policy-driven, meaning the phenomenon of market fluctuations arises from the Chinese government’s use of policies to influence the market.
Xu Zhen, a senior figure in the Chinese capital market, has previously stated to Dajiyuan that relying solely on policies cannot save the stock market. Looking at the fundamentals of China’s economy and employment, there is no solid foundation for mainland stock market to prosper. Therefore, ordinary people’s investment in the stock market may yield short-term profits, but in the long run, it may only end in being harvested.