China's largest memory chipmaker made a blockbuster debut on the Shanghai Stock Exchange's STAR Market on Monday as experts pointed to growing signs of a structural bull run in the A-share market.
In the Chinese mainland's biggest initial public stock offering in recent years, shares of ChangXin Memory Technologies, or CXMT, surged 465.82 percent to close at 49 yuan per share, propelling its market value to more than 3 trillion yuan ($443 billion) and making it the most valuable company on the A-share market on its first trading day. CXMT not only overtook the United States peer Intel in market value, but also dethroned the Industrial and Commercial Bank of China as the domestic market's top-weighted company.
The company raised at least $8.6 billion with the offering, priced at 8.66 yuan per share.
The feverish trading was underscored by a record-shattering 140-billion yuan single-day turnover, reflecting a strong investor appetite for high-tech domestic champions as China presses ahead with its push for technological self-reliance.
Wu Hao, a portfolio manager at Founder Fubon Fund, said that CXMT's IPO completes the most critical piece of a puzzle for the A-share market's memory sector. "It gives China its first homegrown DRAM powerhouse with global heft, sharpening the investment case across the memory value chain," he said.
