Chinese profits rose 25.7% in the June quarter, led by AI-linked firms. The CSI 300 fell 9% and the Star 50 fell 29% in the quarter after.

First-half earnings mask market underperformance and heavy reliance on volatile proprietary trading

Chinese stocks posted gains on Friday, though the week ended with a decline. A notable shift in investor focus moved away from AI shares toward traditional sectors, revitalizing…