China memory giant CXMT valued at US$85 billion in record Shanghai IPO

Lead

ChangXin Memory Technologies (CXMT), China's leading maker of dynamic random-access memory (DRAM) chips, surged by more than 470% on its debut on Shanghai's STAR Market on Monday, becoming the most valuable company listed on mainland China's stock exchanges. The state-backed chipmaker closed its first trading day with a market capitalisation of approximately 3.3 trillion yuan ($488 billion), according to multiple reports. The listing, which raised up to 66.6 billion yuan ($9.8 billion), marks the largest initial public offering by a Chinese semiconductor company on a mainland bourse.

The dramatic debut comes amid a global memory chip shortage driven by surging demand for artificial intelligence data centres, which has pushed up prices for consumer devices. CXMT's valuation reflects investor bets that China can build a competitive domestic chip industry capable of reducing reliance on foreign suppliers, though analysts caution that the company still trails global leaders in advanced memory technology.

Coverage Comparison

Reports of CXMT's debut varied slightly in their opening figures but converged on the same headline outcome. The BBC reported that shares surged by more than 470%, pushing the company's valuation to around 3.3 trillion yuan ($487.3 billion). The South China Morning Post put the rise at 472% and the market capitalisation at 3.31 trillion yuan ($489 billion). The Hindu reported a 466% gain, also valuing the company at 3.3 trillion yuan ($488 billion) after the first day of trading. The differences are minor and likely reflect intraday movements; all sources agree that CXMT ended Monday as the most valuable listed company in mainland China.

The coverage also highlighted the scale of the IPO. Yonhap News reported that CXMT raised 66.61 billion yuan ($9.8 billion) through its offering, a figure echoed by the South China Morning Post in an earlier article that noted the gross proceeds could reach up to 66.6 billion yuan if an overallotment option were fully exercised. The BBC and The Hindu did not specify the exact amount raised but both noted the record-breaking nature of the listing. The South China Morning Post said the deal surpassed the 53.2 billion yuan raised by Semiconductor Manufacturing International Corporation (SMIC) in 2020, making it the largest A-share IPO by a Chinese chip company.

ABC Australia framed the debut in terms of its potential to ease overseas data centre-driven shortages that are pushing up the cost of everyday devices, quoting analysts who noted that consumer electronics companies, reportedly including Dell, HP, and Apple, have been testing CXMT's memory chips. The BBC noted that the stock's surge came despite a sharp sell-off in technology stocks globally this month, and quoted an investment analyst who attributed the extraordinary bounce to the fact that only 7% of the company's shares are available for trading.

The Hindu placed CXMT's debut in the broader context of China's semiconductor self-sufficiency drive, reporting that China's domestic semiconductor self-sufficiency rate reportedly jumped from 16% to 28% between 2024 and late 2025. The same article noted that CXMT still trails global leaders Samsung and SK Hynix by at least three years in high-bandwidth memory (HBM) development. Yonhap News similarly framed the IPO as part of a 'chip offensive' by China, reporting the development of domestically produced immersion deep-ultraviolet (DUV) lithography machines as a related sign of progress.

Key Claims

• CXMT's shares soared between 466% and 472% on their first day of trading on Shanghai's STAR Market, according to several sources.
• The company's market capitalisation reached approximately 3.3 trillion yuan ($488 billion) after the first day, making it the most valuable listed company in mainland China.
• CXMT manufactures DRAM chips used in AI data centres, mobile phones, PCs, tablets, and other devices.
• The IPO raised up to 66.6 billion yuan ($9.8 billion), surpassing the previous record for a Chinese semiconductor company.
• CXMT's shares were oversubscribed by 212 times, according to The Hindu.
• The company's revenue jumped 719% year on year in the first quarter, swinging to a net profit of 33 billion yuan, as reported by the South China Morning Post.
• CXMT has started taking orders for its advanced DDR5 server memory products from Tencent Holdings and ByteDance, according to a person familiar with the supply chain quoted by the South China Morning Post.
• Apple is lobbying Washington for regulatory clearance to buy memory from CXMT, according to recent reports by the Financial Times and Bloomberg, as cited by the South China Morning Post.
• CXMT trails global leaders Samsung and SK Hynix by at least three years in HBM development, as reported by The Hindu.
• China's domestic semiconductor self-sufficiency rate reportedly rose from 16% to 28% between 2024 and late 2025, a claim carried by The Hindu.
• Yonhap News reported that a Chinese state-backed company has begun mass-producing immersion DUV lithography machines, lagging one generation behind ASML's extreme ultraviolet (EUV) equipment.

Perspectives

Chinese regulator and state media: The China Securities Regulatory Commission held meetings with market participants to address concerns that the IPO would drain liquidity from other technology stocks. State-run newspapers including Shanghai Securities News and Securities Daily dismissed those fears in commentaries, according to the South China Morning Post.

US officials and lawmakers: A senior US official indicated to the New York Post that there was 'a real suspicion' that state intervention from Beijing helped drive up CXMT's stock price, and a bipartisan group of US lawmakers opened an inquiry within 24 hours, as reported by The Hindu.

Industry analysts: Experts quoted by ABC Australia and the South China Morning Post noted that CXMT's appeal lies in price and its potential to ease memory shortages, while cautioning that the company still trails global leaders in technology and that its valuation is driven by cyclical market conditions rather than a sudden technological breakthrough.