China's state fund to trim stakes in tech stocks
[SHANGHAI] China's state-backed semiconductor fund announced plans to reduce holdings in some tech firms, even as foreign investors continued to add exposure to the country's tech sector.
The National Integrated Circuitry Investment Fund, also known as the "Big Fund", planned to cut its stakes in Gigadevice Semiconductor, chipmaker Shenzhen Goodix Technology and Hunan Goke Microelectronics by about one percentage point each, according to those companies' statements.
The state fund currently holds 9.7 per cent, 6.6 per cent and 15.6 per cent in the three companies respectively. It did not elaborate on why it wants to cut its holdings.
The plan comes after stellar stock gains this year, with Gigadevice Semiconductor, Shenzhen Goodix and Goke up 213 per cent, 160 per cent and 93 per cent respectively.
Foreigners have spent a record 190 billion yuan (US$27.1 billion) via the Stock Connect so far in 2019 purchasing shares listed on the tech-heavy Shenzhen Stock Exchange.
Beijing set up the Big Fund to support its chip sector, and in October a new national semiconductor fund of 204.2 billion yuan was established as it further seeks tech self-sufficiency amid tighter U.S. scrutiny of Chinese tech firms.
China also launched the Nasdaq-style STAR Market in July.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Capital Markets & Currencies
Oil gains 1% on hopes of firmer demand
Europe: Shares end lower on rate cut jitters; Richemont shines
US: Dow closes above 40,000 for first time as stocks finish mixed
STI rises 0.3% after China unveils property stimulus
‘No better player’ than GIC to help revitalise fortunes of Singapore stock market: observers
Asia: Stocks mixed after Wall Street, Europe retreat from records