Reducing stock holdings refers to reducing the number of stocks held. Shareholder reduction means that shareholders with a higher shareholding ratio sell their stocks and reduce their shareholding ratio.

Under normal circumstances, the reduction of holdings by major shareholders will have an impact on the stock price of a listed company. Once a shareholder reduces their holdings, the company's stock price is likely to fall.

However, after major shareholders reduce their holdings, whether the stock price will rise or fall is not absolute. Specific issues still need to be analyzed in detail.

In most cases, the reduction of holdings by major shareholders is a short-term negative. After all, the reduction of holdings by major shareholders increases the power of short sellers, but this also depends on the situation.

Because of various specific reasons for the reduction of holdings by major shareholders, it cannot be attributed to the fact that major shareholders are not optimistic about the development of the company.

Personal life needs, or the need to collect funds for new investments, etc., may all contribute to the decision of major shareholders to reduce their holdings.

In the final analysis, it depends on whether the reduction of major shareholders' holdings is related to the company's future development. This is the most critical issue.

Major shareholders may not be able to clearly see the development prospects of the company. This is because they do not know the true face of Mount Lu, just because they are in this mountain!

For example, in 2005, Tencent's major shareholders reduced their holdings and missed the opportunity to become billionaires.

Another example is that Hikvision's major shareholders reduced their holdings on 16-17. Gong Hongjia may not be aware of Hikvision's prospects, but he may have new investment projects, so he needs funds.

When major shareholders reduce their holdings, the main force will usually respond with sideways fluctuations because they are unwilling to raise the stock price.

This is why everyone generally treats the reduction of holdings by major shareholders as negative.

However, if the market environment is good and the main wave is rising, the negative impact of major shareholders reducing their holdings will be reduced.

For medium and long-term investors, the reduction of holdings by major shareholders is just a common short-term bad news, and there is no need to care if it does not affect the medium- and long-term trends.