Chinese regulators are scrutinizing recent stock rallies fueled by artificial intelligence optimism. According to people familiar with the matter, authorities have asked some listed companies and funds to give more detail on their approach to the technology. Beijing's move signals a crackdown on speculation around AI-driven gains.

Investors have piled into names they believed had exposure to AI, pushing valuations higher. Regulators see that enthusiasm as a potential source of market instability. The scrutiny reflects a broader effort to separate companies with genuine AI capabilities from those riding hype without substance behind their claims.

The pressure puts companies and funds on the spot. Both face questions about how much real technology backs their positions. If regulators conclude AI claims are overstated, expect a sharp pullback in the stocks that led the recent rally.