What does it mean for shareholders to reduce and sell their shares?

The reduction of major shareholders' holdings has two adverse effects on stocks. First of all, it dilutes the total amount of funds in the secondary market. Because major shareholders reduce their holdings by 1%, they often bring tens of millions or even hundreds of millions of yuan out of the securities market, especially those major shareholders who reduce their chips from the perspective of financial investment. Once the major shareholder's reduction behavior is sustainable, it will curb the bull market atmosphere in the A-share market and cool the A-share market. The second is to remind financial capital from the perspective of industrial capital, because even the controlling shareholders have begun to reduce their holdings. Then, why do small and medium-sized investors, as financial capital, struggle to support it? Therefore, the reduction of major shareholders is equivalent to providing a new valuation scale. Non-tradable shares holding less than 5% are called small ones, and those holding more than 5% are called big ones. Non-tradable shares can be circulated and then cashed out, which is called reduction. Because the big ones are generally the major shareholders and strategic investors of the company, they generally don't throw them away, while the small ones have not been circulated for many years. Once in circulation, the profits are great, and many of them will be cashed out. The reason for the large-scale reduction is that on the one hand, it is worried about the market outlook, on the other hand, it is the initiative to increase investment. It's normal for a bag to sit still, just like investing in stocks.