CXMT Tops China's Mainland Market by Valuation
The offering raised $8.6 billion and drew demand 212 times the retail allotment as AI-driven memory shortages lifted the stock.
- On July 27, ChangXin Memory Technologies shares surged 472% during their Shanghai debut, catapulting the DRAM chipmaker to the top of China's stock market by valuation.
- The offering, worth up to 66.6 billion yuan, raised concerns it would drain funds from other Chinese technology stocks, prompting the China Securities Regulatory Commission to hold stabilization meetings.
- Trading began at 49.50 yuan, a sharp increase from the 8.66 yuan sale price, lifting CXMT's market capitalization to 3.3 trillion yuan from US$85.5 billion during the IPO process.
- Overtaking ICBC as China's most valuable company, CXMT faces high turnover potential; only 6.73% of its enlarged share capital is freely tradable at listing, magnifying price swings.
- HSBC Qianhai Securities noted last week the massive offering could temporarily drain broader Chinese market liquidity, though historical technology listings suggested a rebound in sentiment could follow.
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SanDisk Sinks 12%, Micron Drops 5%, SK Hynix Falls 8% as China’s CXMT IPO Rattles Memory Stocks
China's CXMT just pulled off one of the most explosive stock market debuts in history, and memory giants with triple-digit gains on the books are now facing a sector-wide reckoning that could upend the entire bull case for DRAM and NAND.
With China's second largest IPO, CXMT is able to monetize the demand boom for storage chips. At the same time, there is concern that other shares will suffer from the IPO.
The semiconductor manufacturer increased its market debut by 470 percent, helping China to narrow the gap to competition from the US and South Korea.
The Chinese semiconductor manufacturer CXMT has posted strong profits in its stock exchange debut. At the beginning of trading, the company's paper from the East China Hefei jumped by more than 470 percent. CXMT increased with a market value of approximately 450 billion euros to the most valuable publicly traded company in mainland China.
The online edition of the Austrian daily Die Presse.
Hefei's CXMT is becoming China's most valuable listed company. Despite technical backlogs, the market share is growing with AI boom and state support.
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