TECH

Chinese Tech Insiders Cash Out After AI Stock Rally

Published: Jun. 10, 2026 12:47 a.m. GMT+8

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A wave of insider selling has hit Chinese A-share tech companies trading at over 100 times earnings since May. Photo: VCG

A wave of share-sale plans is sweeping across Chinese technology companies listed on the A-share market, as executives and major institutional investors move to lock in gains after a sharp AI-driven rally.

Since May, executives and major shareholders at dozens of A-share tech companies have announced plans to offload their holdings to lock in profits. Net weekly share reductions in the sector jumped to roughly 12 billion yuan ($1.8 billion) in May, up from 8 billion yuan in April, according to Huatai Securities.

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Executives and major shareholders at Chinese A-share tech firms are announcing share-sale plans to lock in gains after AI-driven rallies.
Net weekly share reductions reached 12 billion yuan in May, up from 8 billion in April, with 73 semiconductor firms completing reductions so far in 2026.
Examples include Longsys (down 9% after VP's sale) and Violet (350% gain but <1% revenue from AI-related products); state fund cashed out 3.88 billion yuan.

AI generated, for reference only

What Happened When

Early 2026：: Violet Technology stock climbs 350% over six months; its price-to-earnings ratio tops 200.

April 2026：: Net weekly share reductions in the tech sector stood at 8 billion yuan.

May 2026：: Net weekly share reductions in the tech sector jumped to about 12 billion yuan.

Since May 2026：: Executives and major shareholders at dozens of A-share tech companies announce plans to offload holdings to lock in profits.

June 7, 2026：: Shenzhen Stock Exchange sends inquiry letter to Violet Technology; Violet states optical modules and advanced packaging account for less than 1% of its 2026 revenue.

June 8, 2026：: Shenzhen Longsys Electronics stock plunges over 9% after disclosing deputy general manager Zhu Yu plans to sell shares worth about 308 million yuan.

Recent months of 2026：: China's primary state-backed semiconductor fund sells about 150 million shares of National Silicon Industry Group, cashing out nearly 3.88 billion yuan.