(Yicai) Oct. 9 -- Almost 40 companies listed on the Chinese mainland disclosed plans from their shareholders to reduce equities after the stock market soared for six consecutive trading days. The market has significantly retreated today.

Several shareholders of Southchip Semiconductor Technology, including the third-largest, Shanghai Integrated Circuit Industry Investment Fund, plan to collectively reduce holdings by up to 5 percent of the firm's total share capital, the Shanghai-based chip developer announced late yesterday.

Snack retailer Bestore, electrical components manufacturer Higasket Plastics, automotive interior manufacturer Foresight Technology, and about 35 other listed firms made similar announcements yesterday. Since the start of this market trend, more than 100 firms listed in Shanghai and Shenzhen have disclosed their shareholders' plans to pare stakes.

Southchip [SHA: 688484] closed down 11 percent at CNY36.69 (USD5.19) a share in Shanghai today after the stock surged about 62 percent over the previous six trading days. Bestore [SHA: 603719] fell by the 10 percent daily trading limit to close at CNY12.41 and Higasket [SHA: 603150] plunged 8.3 percent to CNY25.89. Foresight [SHE: 301529] tumbled 14.6 to CNY34.30 a share in Shenzhen.

The broader Shanghai Composite Index fell 6.6 percent to 3,258.86 points today, the Shenzhen Component Index dropped 8.2 percent to 10,557.81 points, and the ChiNext Index sank 10.6 percent to 2,280.10 points.

The Chinese mainland market began its rally after the People's Bank of China announced a package of monetary easing measures on Sept. 24. The Shanghai Composite Index had surged 27 percent over the six trading days as of closing yesterday, while the Shenzhen Component Index and the ChiNext Index had soared 42 percent and 67 percent, respectively.

Editor: Martin Kadiev