Ark Invest's Cathie Wood is selling Chinese stocks in droves amid a crackdown in Beijing. Wood sold 629,884 shares of Tencent in the Ark Fintech Innovation ETF on Monday, a position worth roughly $37.9 million, based on the stock's closing price of $60.18 per share. ARK also sold 970,390 shares of JD.com in various funds Monday, a position worth about $64 million based on JD.com's closing price of $66.08. The firm has been selling global China-based giants over the past few weeks as China is starting to crack down on its largest corporations and promising to update rules for companies listing on U.S. exchanges . The Chinese government fined technology titans Tencent, Alibaba and newly public Didi for anti-monopoly behavior earlier this month. "The incentives to become incredibly successful in China are diminishing somewhat now that the government is expressing concern," Wood said during an Ark Invest webinar earlier this month . "Some people feel they have more power than the government would like them to have. So I do think there's a valuation reset." ARK also sold 107,767 shares of Chinese e-commerce company Alibaba on Monday, a position worth roughly $20.6 million based on the stock's closing price of $191.76 per share. Ark also dumped shares of Baidu and BYD Co. Despite the selling, JD.com and Baidu are still top 10 holdings in the Ark Autonomous Technology and Robotics ET F. Alibaba was a top holding just last week. Wood told CNBC earlier this month that Ark won't pull out of companies based in China. Wood has not sold shares of Chinese company NIU Technologies.
Cathie Wood
Source: CNBC
Ark Invest's Cathie Wood is selling Chinese stocks in droves amid a crackdown in Beijing.