# Dragon enters bear cave with $2.4 trillion lost

> Chinese stocks drop 20% as AI sector faces profit doubts.
- Title: Dragon enters bear cave with $2.4 trillion lost | Shortify
- Summary: Chinese stocks drop 20% as AI sector faces profit doubts. Chinese stocks lost $2.4 trillion since May peak as AI company profitability concerns drive market…
- Keywords: csi 300, hang seng tech index, ai companies, profitability, chinese stocks, market value, money, business, Dragon, enters, bear, cave
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/us-stocks/news/dragon-enters-bear-cave-with-2-4-trillion-lost-since-may-peak/articleshow/135131775.cms
- Author: Bloomberg
- Published: 2026-10-23T02:15:00+00:00
- Read time: 1 min
- Topics: csi 300, hang seng tech index, ai companies, profitability, chinese stocks, market value, money, business
## Chinese stocks drop
Chinese stocks lost $2.4 trillion since May peak as AI company profitability concerns drive market declines.
## Market reversal
The declines mark a sharp reversal from the stimulus-driven rally that gained momentum from AI bets before succumbing to a global selloff.
## CSI 300 Index down
The CSI 300 Index closed 1.8% lower on Thursday, bringing its total losses from a high in June to 20%.
## Tech index plunge
The Hang Seng Tech Index is down 31% for the year as investors question whether hyperscalers' massive spending will generate sufficient returns.
## AI profitability concerns
Startup favorites and China's biggest tech firms have emerged as among the biggest losers as scrutiny over future AI demand and earnings prospects intensifies.
## Investor warnings
Fu Zhifeng, chief investment officer at Shanghai Chengzhou Investment Management, warned the slide is too rapid and may herald further declines.
## Key takeaway

Chinese stocks lost $2.4 trillion since May peak as AI company profitability concerns drive market declines.