CHINA’S largest State-backed semiconductor fund plans to reduce its holdings in two listed technology companies, a decision that comes following a torrid bull run in China’s stock market.

The bull run has been fuelled by signs of an early economic recovery for China from the coronavirus, capital market reforms and accelerating inflows of foreign funds.

Shanghai-listed Sanan Optoelectronics Co. said in a filing Tuesday that China Integrated Circuit Industry Investment Fund, also known as the “Big Fund,” reduced its ownership in the company by one percentage point to 9.29 percent, selling 44.793 million shares between July 8 and July 10.

The stake reduction is part of a previously announced plan to cut holdings by 2 percent by Jan. 4, 2021, according to the statement.

Shenzhen-listed NAURA Technology Group Co. also said in a filing that the “Big Fund” will reduce 2 percent in the company over the next six months. The fund currently holds 49,31,000 million shares in the company and is its third-largest shareholder.

The share sales follow similar ones Friday, when Shenzhen Goodix Technology Co., Wuxi Taiji Industry Co. and Beijing BDStar Navigation Co. said the “Big Fund” would reduce its stake in the companies.

Tech stocks have been surging in China for the past year on the back of State support, driven by tensions between the United States and China over Shenzhen-based Huawei Technologies Co.

The National Council for Social Security Fund, China’s national pension fund, said last week it plans to sell a 2 percent stake in People’s Insurance Company (Group) of China Ltd. (SD-Agencies)