Xinhua reported that, according to statistics, in the first quarter of 2014, 41.28 percent of stock funds and blend funds sold off their real estate holdings.
Out of 625 stock funds and blend funds, 258 cleared out their holdings in the real estate sector and now have zero investment in that sector.
In those three months, the market value of the real estate stocks that the funds held dropped from 39 billion yuan to 31 billion yuan, a decrease of 7.8 billion.
According to the 2014 first quarter reports of the investment funds, after the financial sector, the real estate sector was the hardest hit. A downward price adjustment and a market cooling have been confirmed for the housing market. The changes in the housing market will put significant pressure on the stock market.
Source: China Securities, May 8, 2014