In the Chinese A-share market, more than 500 companies have recently introduced plans for major shareholder reduction, with a total reduction amount exceeding 100 billion yuan. The reasons given by these major shareholders for the reduction mainly involve funding needs.
With the mainland stock market on the rise, many major shareholders have launched reduction plans at high stock prices. According to a report by the Beijing News on May 27th, data from the securities and financial data service provider Oriental Wealth shows that since April 2026, over 500 listed companies in the A-share market have disclosed reduction plans by major shareholders. Data from the Wind data service provider shows that the total amount of reductions planned by the major shareholders of these 500+ listed companies (calculated based on the closing price of the companies on the date of the reduction announcement and the upper limit of the number of shares the shareholders plan to reduce) exceeds 100 billion yuan. These companies cover various industries such as semiconductors, chemicals, machinery, and electrical equipment, with some companies even issuing multiple shareholder reduction announcements.
The report indicates that among the companies disclosing reduction announcements, many are industry leaders and hot stocks that have doubled in stock price within the year.
On the evening of May 26th, Zhaoxin Innovative Technology Group issued a notice regarding changes in equity interests of shareholders holding more than 5%, touching the 1% scale. Chairman Zhu Yiming accumulated a reduction of 6,329,905 shares of Zhaoxin Innovative through block trading and bulk trading between May 11th and 25th, 2026, accounting for 0.9% of Zhaoxin Innovative’s total share capital. A previous announcement showed that Zhu Yiming planned to reduce Zhaoxin Innovative’s shares through block trading and bulk trading by no more than 11.21 million shares, representing approximately 1.6% of the company’s total share capital, with the reduction period from April 30th, 2026, to July 29th, 2026.
At the beginning of this year, Zhaoxin Innovative’s stock price was less than 240 yuan per share. By the closing on May 26th, its stock price had reached 526.22 yuan per share.
Additionally, according to reports from media outlets such as First Financial, on May 22nd, 7 semiconductor companies including Zhongwei Technology, Lanqi Technology, Aojetech, Changxin Innovation, Canqin Technology, Jingsheng Shares, and Guangli Micro simultaneously issued reduction announcements, covering various critical areas such as semiconductor equipment, chip design, and materials, with many being leading companies in niche sectors.
Based on the closing price on the 22nd, the combined cash-out scale of the 7 companies reached 12.692 billion yuan, setting a new high in daily reduction amount for the semiconductor sector this year.
Oriental Wealth data shows that currently, there are 177 stocks in the A-share semiconductor sector, and the total market value of these companies has increased from 7.54 trillion yuan at the end of 2025 to 12.31 trillion yuan on May 26th, 2026. During this period, 26 listed companies have major shareholders with reduction plans.
The reduction reasons stated in the announcements, with “funding needs,” account for the majority, making “funding needs” a standard response in reduction announcements.
In response, Su Business Bank’s commissioned researcher Fu Yifu told the Beijing News that major semiconductor leaders like Zhaoxin Innovative and Zhongwei Technology are being heavily reduced by shareholders at high levels due to significant cognitive differences between industry capital and secondary market investors in valuation pricing and industry cycle rhythm. In this round of sector upswing, many leading stocks have doubled or even multiplied in stock price within the year, with valuations soaring to nearly a decade-high, far exceeding the matching range of the current performance. For ordinary investors, significant reductions by founders, controlling shareholders, and key executives serve as valuable risk signals, urging individual stocks with doubled stock prices, high valuations, and reductions to be decisively avoided.
Regarding this, netizen “Forest Path” believes that regardless of how compelling the reasons given may be, “the essence is all about cashing out at high levels.”
“MountainCom” thinks that, “because these companies, touted as the Nvidia of China, know the extent of their company’s bubble, and if they don’t seize such a rare opportunity, they will lose out.”
In 2026, the Chinese A-share market has seen an upward trend, with the Shanghai Composite Index once exceeding the 4200-point mark, hitting nearly an 11-year high.