Chinese investors dump $5.9 billion worth of Tencent, Xiaomi, and Alibaba shares in June

Chinese investors pulled back from major tech stocks in Hong Kong last month, putting pressure on a rally that has outperformed the broader market this year.

Mainland investors offloaded a combined HK$46.4 billion ($5.9 billion) worth of Tencent Holdings, Xiaomi, and Alibaba Group shares through the trading links with the financial hub in June, according to Bloomberg calculations based on exchange data. They were also net sellers of the three stocks in May.

Shares of Tencent (OTCPK:TCEHY) (OTCPK:TCTZF) and Alibaba (NYSE:BABA) have been on a decline since April, while Xiaomi’s (OTCPK:XIACF) (OTCPK:XIACY) shares have risen as the smartphone maker debuted a new car.

The selling from Chinese investors “is partly due to profit taking, but also because of a lack of new catalysts,” Vey-Sern Ling, a managing director at Union Bancaire Privee told Bloomberg.