China's technology stocks are losing their luster as investors question whether the country's artificial intelligence boom can deliver profits strong enough to justify lofty valuations. The STAR 50 Index, tracking major tech firms on Shanghai's STAR Market, has plunged over 40% from its July peak. Battery giant CATL, a key player in the EV and energy storage sectors, has also fallen 37% since the start of the year, despite reporting approximately 59% revenue growth in Q3, with net profit rising only about 15%. Analysts note that while the sell-off began as a valuation correction, it has evolved into a critical assessment of whether AI investments can translate into sustainable earnings, particularly given China's prolonged property downturn and weak consumption.