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CXMT jumps 472% on Shanghai debut, becoming China’s top-listed firm
The Star Market listing values CXMT at 3.31 trillion yuan, after the IPO offer size of up to 66.6 billion yuan, and the CSRC met market participants to address concerns about fund rotation.
ChangXin Memory Technologies, a major maker of dynamic random-access memory (DRAM) chips, surged 472% on its Shanghai trading debut, lifting its market value to 3.31 trillion yuan, or about US$489 billion, according to SCMP Economy.
CXMT opened at 49.50 yuan on the Star Market, versus an IPO price of 8.66 yuan, and the offering size of up to 66.6 billion yuan is set to exceed the 53.2 billion yuan raised by chip foundry Semiconductor Manufacturing International Corporation in 2020, SCMP Economy reported.
Ahead of and around the listing, market watchers were concerned the stock could pull capital away from other Chinese technology names, prompting the China Securities Regulatory Commission to hold meetings with representatives from listed companies, securities firms, fund managers, and academia.
Participants urged stronger guidance on market expectations and a more institutionalized market stabilization mechanism, while the CSRC said it would respond to concerns and enhance the market’s inherent stability, the outlet added, citing a CSRC statement dated July 21.