Global Investors Rejig Chinese New Economy Holdings

Some bellwethers trimmed their stakes in the likes of Alibaba and NetEase before news broke that Beijing had wrapped up a years-long crackdown on misconduct in the tech sector

BlackRock’s headquarters in New York. Photo: IC Photo

Global investment bellwethers such as BlackRock Inc. made major adjustments in their exposure to U.S.-listed Chinese stocks in the second quarter, with some trimming stakes in tech giants including Alibaba Group Holding Ltd. and NetEase Inc.

Institutional investors rejigged their positions in China’s new economy companies before news broke that Beijing had wrapped up a years-long crackdown on misconduct in multiple areas of the tech industry and rolled out a slew of measures supporting the private sector amid a flagging post-pandemic recovery. Both were key changes that introduced bursts of positive sentiment for offshore-traded Chinese equities.

Investors including BlackRock and Goldman Sachs Group Inc. trimmed their holdings in Alibaba and e-commerce challenger Pinduoduo Inc. in the April-to-June period, according to the firms’ quarterly filings to the U.S. Securities and Exchange Commission (SEC). George Soros’ Soros Fund Management LLC, meanwhile, built a new position in Alibaba.

BlackRock and Goldman Sachs also pared their positions in gaming giant NetEase, online retailer Vipshop Holdings Ltd., and social media platform Weibo Corp.