Cathie Wood’s Ark Invest has sharply reduced its exposure to Chinese technology stocks over the past week as Chinese authorities continue with crackdown, according to data released by Markets Insider on Wednesday.
Ark’s primary Disruptive Innovation ETF has observed its exposure to Chinese stocks reduce to less than 1% from 8% high in February.
Over the last week, the thematic investment manager sold 3 million shares of HUYA, 1 million shares of Tencent, and over 600,000 shares of JD.com.
The move follows the increased regulatory scrutiny from the authorities on tech firms, including Didi and ByteDance. After its IPO, Didi was removed from Chinese app stores citing data security issues.
From the highs of February, Chinese tech stocks have lost over $500 billion in market capitalization.
Ark’s Disruptive Innovation ETF remained flat in morning trades on Wednesday and is lower 2% year-to-date.