Key facts
- Executives and major shareholders at Chinese A-share tech companies are selling shares to lock in profits.
- Net weekly share reductions in the tech sector increased to approximately 12 billion yuan in May.
- Shenzhen Longsys Electronics saw its stock drop over 9% following a planned share sale by a deputy general manager.
- China's state-backed semiconductor fund has cashed out nearly 3.88 billion yuan by selling shares of National Silicon Industry Group.
- Violet Technology, which gained 350% in six months, reported that AI-related products contribute less than 1% of its revenue.
A significant wave of insider selling has emerged across Chinese technology companies listed on the A-share market, as executives and major institutional investors seek to capitalize on recent gains driven by an artificial intelligence (AI) rally. Since May, numerous tech firms have seen their leadership and large shareholders announce plans to divest holdings.
According to data from Huatai Securities, net weekly share reductions within the sector surged to approximately 12 billion yuan ($1.8 billion) in May, an increase from 8 billion yuan in April. This trend has impacted companies like Shenzhen Longsys Electronics, whose stock fell over 9% after its deputy general manager disclosed plans to sell shares worth about 308 million yuan. Similarly, Shenzhen Violet Technology Co. Ltd., which had seen its stock climb 350% over six months with a price-to-earnings ratio exceeding 200, experienced share offloads by major shareholder Du Xuan and vice president Sang Zelin, totaling over 240 million yuan. The company later clarified that optical modules and advanced packaging, key areas for AI, account for less than 1% of its 2026 revenue.
Further illustrating the trend, China's primary state-backed semiconductor fund has divested approximately 150 million shares of National Silicon Industry Group, realizing nearly 3.88 billion yuan. So far in 2026, a total of 73 listed semiconductor companies have completed their share reduction plans, signaling a broad-based move by insiders to cash in on the AI-fueled market performance.