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© Reuters.Investing.com – Chinese tech stocks dived on Monday morning in Asia following the news that the country’s state semiconductor fund will reduce stakes in the tech companies.
Shenzhen Goodix Technology’s stock price fell 4.5%, while stock prices of Hunan Goke Microelectronics plunged 9.51% and Gigadevice Semiconductor dropped 7.01%.
Known as the “Big Fund”, the National Integrated Circuitry Investment Fund planned to partially divest in these tech companies by no more than one percentage point each.
These three companies are prominent players in China’s semiconductor industry. The state fund currently holds 15.63% in Goke, 6.63% in Goodix, and 9.72% in Gigadevice.
The move came after the three companies made great gains this year. Goke, Goodix and Gigadevice’s stock prices have surged 93%, 161% and 214% this year.
This special national industry investment fund was set up in 2014 with an aim to boost the semiconductor industry by investing in chip manufacturing and designing, as China is striving for tech self-sufficiency amid tighter U.S. scrutiny of Chinese tech firms.
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