Although investment in stocks related to artificial intelligence (AI) remains one of the hottest global market themes this year, the rapid rise in prices of many stocks has begun to raise questions about their alignment with underlying business fundamentals.
This is especially true in China, where speculative activity has spread widely even to companies without clear links to AI, amid concerns that valuations may be outpacing actual earnings potential.
According to data compiled by Thairath Money, although the overall Chinese stock market has shown mixed short-term movements—both negative and positive—in the SSE Composite Index representing Shanghai’s market and the SZSE Component Index representing Shenzhen’s market,
technology stocks have risen prominently, serving as a key driver. This is reflected in the returns of indexes related to innovation and technology stocks, which have significantly outperformed the broader market indexes as of 22 May 2026 GMT+7.
The Shanghai Shenzhen CSI 300 (CSI300) index, a benchmark for mainland China’s stock market that includes 300 large companies from Shanghai and Shenzhen,
However, the most outstanding index is the SSE Star 50 (STAR50), which includes leading technology and innovation stocks from the STAR Market, Shanghai’s newer stock board.
This reflects the strong speculative interest and investor expectations around the AI theme, which continues to support the prices of China’s technology stocks.
However, reports indicate that Chinese regulators have begun increasing scrutiny of listed companies and funds related to AI amid worries that valuations in parts of the market may be rising faster than business fundamentals.
Bloomberg Bloomberg reports that Chinese regulators are monitoring the heated AI-driven stock market, requesting certain listed companies and funds to clarify business details and investment approaches related to AI, amid concerns that some stock prices may have risen faster than their fundamentals.
Sources reveal that the Shanghai and Shenzhen stock exchanges have sent inquiries to multiple listed companies, asking them to clarify whether their core businesses have significant AI connections and whether their disclosures to investors are sufficiently clear.
At the same time, regulators have asked managers of ETFs and funds with large AI investments to disclose their asset valuation methodologies and reasons for holding such assets.
They have also inquired about risk management measures addressing situations where stock prices increase faster than actual earnings growth, reflecting concerns about a growing gap between price and fundamentals.
This move reflects the Chinese government’s concern over the AI investment trend, which has helped push the STAR50 technology index to record highs in May, amid worries that the market may be overheating and that some stocks have risen despite lacking clear AI-related businesses.
China's official media, Economic Information Daily, under Xinhua News Agency, published an article warning of "hidden risks" in AI investments, noting that many stocks have surged to high levels while earnings outlooks remain uncertain.
Since early May, more than 20 listed companies in China and Hong Kong have issued statements clarifying AI and computing-related business aspects to help investors understand their revenue dependence and growth plans related to these technologies.
One notable case is Wei Long Grape Wine Co., a Chinese wine producer, whose stock price nearly doubled within seven trading days before the company denied rumors about support from computing power asset injections, leading the stock to hit the daily 10% limit down.
Nevertheless, Chinese regulators continue to closely monitor market conditions and often signal efforts to cool down overheating or boost confidence when asset prices move too sharply in either direction.
Meanwhile, in May, Chinese investors’ risk appetite has clearly increased, with trading volumes, margin usage, and stock valuations all rising to high levels.
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