The fund reduction means that the fund company thinks that the stock is highly valued and chooses to reduce its holdings. However, the fund reduction will produce a large number of selling orders, which will cause the stock to fall and attract market investors to follow suit, thus causing the stock price to fall.
Investors should pay attention to the fact that the increase or decrease of fund holdings is only an event factor that affects the rise and fall of stocks, and the core factors that affect the rise and fall of stocks are supply and demand, capital, performance, policies and news.