The recent decline in SMIC's shares has been attributed to frequent divestments by the state-backed semiconductor investment fund. Firstly, the National Integrated Circuit Industry Investment Fund Co., Ltd. reduced its stake in National Silicon Industry Group Co.,Ltd. between May 20 and May 28, 2026, selling approximately 33.05 million shares via block trades, realizing at least 900 million yuan. Secondly, the fund, a major shareholder in Darbond Technology Co.,Ltd., sold about 1.4224 million shares through centralized bidding and block trades from May 19 to May 28, 2026, cashing out roughly 120 million yuan. Thirdly, the state fund has executed multiple reductions in Semiconductor Manufacturing International Corporation this year. On May 26, it sold another 7 million shares at an average price of HK$86.69, realizing HK$607 million. According to Jinshi Zatan statistics, the fund has cumulatively sold 100 million SMIC shares in 2024. Based on this year's average price of HK$68 per share, the total proceeds amount to approximately HK$6.8 billion. In today's trading session, SMIC's H-share performance lagged behind its A-shares. While SMIC's A-shares nearly hit the daily limit-up on the 25th, the H-shares rose less than 6% after the holiday on the 26th, and the current price has not yet reached a historical high. In comparison, Huahong Semiconductor has gained 128% year-to-date, whereas SMIC has only advanced 25%.