601179，外资股东一年三度减持

Core Viewpoint - The recent share reduction announcement by China XD Electric (601179.SH) from its fifth-largest shareholder, GE SMALLWORLD (SINGAPORE) PTE LTD, has caused significant market reactions, indicating potential concerns about the valuation levels in the electric grid equipment sector [3][4]. Group 1: Shareholder Actions - GE SMALLWORLD plans to reduce its holdings by up to 154 million shares, representing a maximum of 3% of China XD Electric's total shares, with a potential cash-out of approximately 1.36 billion yuan based on the announcement's closing price [4]. - This marks the third reduction by GE SMALLWORLD in the past year, suggesting an accelerated exit strategy from its investment in China XD Electric [4]. - The previous reductions occurred in November 2024 and February 2025, with the latter resulting in a cash-out of 648 million yuan after selling 102 million shares [4]. Group 2: Market Reactions - Following the announcement, China XD Electric's stock price dropped significantly, closing at 7.96 yuan, with a weekly decline of 14.6% [3]. - The electric grid equipment sector index fell by 10% in the week following the announcement, with many leading companies experiencing declines of over 10% [7]. - The market's strong reaction is attributed to the timing and scale of the share reduction, indicating that even though there is long-term optimism for the electric equipment sector, current valuations may be perceived as excessive [5][7]. Group 3: Industry Context - The electric grid equipment sector has seen substantial growth, with the index reaching a ten-year high earlier in November 2025, followed by a significant correction [6][8]. - The ongoing transition to a new power system in China is expected to drive demand for electric grid infrastructure, with substantial investments planned, including over 800 billion yuan for high-voltage projects during the 14th Five-Year Plan [8][9]. - Despite the current downturn, the long-term growth prospects for the electric grid equipment industry remain solid, supported by government initiatives and increasing investments in renewable energy integration [9].