If your stock doubled this year because you slapped “AI” somewhere in your investor deck, Chinese regulators would like a word.
The Shanghai and Shenzhen stock exchanges have begun examining companies and funds that rode the artificial intelligence wave to massive gains. As of May 22, regulators started requesting detailed information from listed firms about their actual involvement in AI, specifically whether their core businesses have a “meaningful link” to the technology. The message is unmistakable: prove it or pipe down.
The AI rally that caught regulators’ attention
Chinese tech stocks have had a spectacular year. Names like Alibaba, SMIC, Baidu, Tencent, and Xiaomi have seen significant gains, with some doubling in value on the back of AI enthusiasm. That kind of broad, narrative-driven rally tends to attract two things: more retail money and more regulatory eyeballs.
This isn’t the first time Beijing has moved to cool an overheating AI trade. Back in February, state-linked investors sold off positions explicitly to temper the boom. Think of it as the government tapping the brakes before the car hits the guardrail. That intervention worked temporarily, but with stocks continuing to climb, exchanges are now taking a more granular approach by going directly to the companies themselves.
