SMIC's stock price plummeted 5.02% during intraday trading on Monday, continuing its recent downward trend in the semiconductor sector.

The decline was driven by the National Integrated Circuit Industry Investment Fund (Big Fund) reducing its long position ratio in SMIC H-shares below 8%, while also trimming holdings in other semiconductor companies. Additionally, southbound capital recorded net selling of nearly 28 billion HKD in SMIC last week, amplifying bearish sentiment. The broader semiconductor sector remained under significant pressure, with multiple chip stocks experiencing declines, reflecting a clear sector-wide contagion effect as institutional investors continue de-risking and rotating away from chip stocks.