Chinese markets lose trillions as race for AI supremacy with US takes its toll

China’s stock markets have shed trillions of dollars in recent months as investors question whether the country’s artificial-intelligence boom can deliver profits. The STAR 50 index, which tracks technology and innovation companies listed in Shanghai, has fallen 40% since June. Indexes tracking other major Chinese companies are down about 20% over the same period. The losses come as Beijing competes with the United States for AI dominance, amid concerns over profitability and threats from Western countries. Investor confidence has weakened.