US firm sells entire 7pc stake in latest sign of foreign investors eyeing exit door
Shares of Aluminum Corp of China (Chalco), the nation's largest aluminium producer, slumped yesterday after United States-based strategic investor Alcoa sold its entire holding in the company, giving the latest sign foreigners are eyeing the exit door from their mainland investments.
Alcoa joins US billionaire Warren Buffett in selling down holdings in the nation's biggest companies.
Mr Buffet sold about HK$1.1 billion of his stake in PetroChina, the mainland's largest oil producer. On August 29, his Berkshire Hathaway sold 92.66 million PetroChina shares at an average of HK$11.473 per share, reducing its stake to 9.72 per cent.
International investors have poured billions of dollars into mainland stocks, lured by earnings potential in the world's fastest-growing major economy. Some are now seeking to cash out, judging the shares are fully valued.
Chalco's H shares dropped as much 12.25 per cent after Alcoa sold its stake of 882 million shares at HK$17.34 each on Wednesday for about US$1.96 billion.