Shares of Semiconductor Manufacturing International Corporation (SMIC) experienced a sharp decline intraday, plummeting 5.44% on Friday. The significant drop occurred during the regular trading session, reflecting heightened selling pressure on the stock.

The movement appears to be driven by news that China's National Integrated Circuit Industry Investment Fund reduced its stake in the company. The fund sold approximately 7 million shares, lowering its holding from 8.08% to 7.99%. This disposal by a major state-backed shareholder often signals a reassessment of position to investors and can trigger market reaction.

Market data indicates this is part of a broader trend, with the National IC Fund having systematically reduced holdings in several semiconductor portfolio companies since the beginning of the year, cumulatively cashing out a significant amount. Such activity from a key investor can influence market sentiment towards the sector.