China Stocks Shed $2.4 Trillion Since May on AI Profit Doubts

The scale of the drawdown matters less than what it reveals: the market is repricing AI from a story to a P&L question, and Chinese AI names are being marked down first because proof of monetization is thinnest there. The pressure is compounded rather than self-contained — U.S. restrictions and elevated U.S. rates mean domestic sentiment alone cannot turn the tape. The open question is whether earnings evidence, not policy support, becomes the trigger for stabilization; until profitability is demonstrated rather than assumed, the burden of proof sits with the companies.