Shares in the Chinese memory manufacturer CXMT rose by 466 per cent on 27 July on their first day of trading in Shanghai. The share price closed at 49 yuan, compared with an issue price of 8.66 yuan, and the company’s market capitalisation reached approximately 3.3 trillion yuan. As a result, CXMT overtook China’s largest bank, ICBC, in terms of market capitalisation. The company raised 57.92 billion yuan from the offering, making it the largest IPO in Asia this year.
The scale of this growth shows that investors view CXMT not only as a chip manufacturer, but also as one of the pillars of China’s technology policy. The company develops DRAM memory used in servers, computers, smartphones and cars. Demand is being driven by data centres and investment in artificial intelligence, and TrendForce estimates that tight memory supply could continue to put upward pressure on prices into 2027.
The listing may make it easier for CXMT to finance new factories and research projects. In the longer term, this means greater competition for Samsung, SK Hynix and Micron, particularly in popular DRAM segments. For electronics manufacturers, a broader supplier base may reduce the risk of shortages, although it may not lead to a rapid fall in prices.
At the same time, caution is required when assessing the valuation. Only 6.73 per cent of the shares were offered for sale, which may have boosted demand and increased the volatility of the share price. The memory industry remains cyclical, and export restrictions are hindering Chinese firms’ access to the most advanced manufacturing technologies. CXMT’s market debut is therefore both a sign of the growing strength of the Chinese semiconductor sector and a test of whether the enthusiasm surrounding AI will translate into sustainable profits.
