Soros joined by investment firms D1 and Soroban in timely exit from Chinese holdings

NEW YORK (BLOOMBERG) – Other funds joined Mr. George Soros’ investment firm to reduce exposure to U.S.-listed Chinese companies in the second quarter, averting a selloff sparked by a state crackdown on everything from ride-sharing companies to education companies.

D1 Capital Partners, the investment firm headed by Mr. Dan Sundheim, sold its 25 million shares in New Oriental Education & Technology Group, while Soroban Capital Partners, the hedge fund firm co-founded by Mr. Eric Mandelblatt, sold its 2.06 million share stake in Alibaba Group Holding, according to filings with the U.S. Securities and Exchange Commission (SEC).

The filings show that some funds managed to avoid, at least in part, the ugly month of July for Chinese stocks in the United States. The Nasdaq Golden Dragon China Index, which tracks 98 such companies, plunged 22% last month.

Soros Fund Management divested many of its investments in American certificates of deposit (ADR) from Chinese companies, including Baidu, Vipshop Holdings, Tencent Music Entertainment Group and IQiyi, positions it reclaimed during the collapse of Archegos Capital Management in March and April.

Chinese tech stocks saw another selloff in August as Beijing took further steps to tighten its grip on the country’s internet giants.

The Hang Seng tech index fell 3.7% on Tuesday (August 17th), its fifth straight drop, after China’s market regulator issued draft rules banning unfair competition among the country’s online platform operators.

SEC Chairman Gary Gensler also issued his most blunt warning yet about the risks of investing in Chinese companies.

In the United States, Baidu’s ADRs fell by 3.8%, New Oriental by 5.3% and TAL Education Group by 5.6%.