SMIC shares tumbled 5.07% during intraday trading on Wednesday, succumbing to heavy selling pressure as a massive capital rotation swept through the semiconductor sector.

The sharp decline was primarily driven by the ongoing capital diversion effect from ChangXin Technology's blockbuster IPO on the STAR Market. The mega listing, which raised approximately 57.9 billion yuan with an estimated post-listing market capitalization of 2 to 3 trillion yuan, has prompted institutions to reduce their positions in liquid semiconductor leaders like SMIC to allocate funds toward the newly listed chipmaker.

The broader semiconductor sector also bore the brunt of the rebalancing, with Hua Hong Grace dropping 4.19%, GigaDevice falling 6.25%, and other major chip stocks posting significant losses, underscoring the intensity of the institutional repositioning across the industry.