Gasgoo Munich- July 27 marked a historic moment for IPOs on China's A-share market. China memory chip leader ChangXin Memory Technology (CXMT) officially listed on the STAR Market, becoming the largest IPO in the board's history. The company raised approximately 57.9 billion yuan at an issue price of 8.66 yuan per share. This figure reached 66.6 billion yuan when the over-allotment option was fully exercised. It set a new fundraising record for the STAR Market.
Image source: Baidu Stock Market
On its debut, CXMT delivered a performance that was nothing short of explosive. The stock opened at 49.5 yuan per share. It eventually closed with a 465.8% surge, pushing its total market value near 3.3 trillion yuan. This directly surpassed traditional giants like Agricultural Bank of China and ICBC. CXMT claimed the top spot in the A-share market cap rankings.
The listing of this super-sized new stock also delivered a massive windfall for investors in the tech sector, who have endured recent losses. Data shows over 7.7 million winning numbers were allocated for CXMT's online offering. The overall success rate was just 0.4714%. On average, investors needed 212 subscription numbers to secure one lot. This made the new share application extremely difficult.
Investors paid just 4,330 yuan per lot. Selling at the opening highs could have yielded a profit of over 20,000 yuan. This represents a remarkably high return. One investor told Gasgoo they regretted participating in the subscription but failing to win an allocation. They missed out on this heavy-hitting rally.
Solid Fundamentals and Triple-Cycle Resonance
CXMT's ability to single-handedly disrupt the traditional A-share market cap order is not the result of a bubble fueled by short-term speculation. Instead, it is driven by a triple core logic. These include an upswing in the industry cycle, explosive earnings growth, and breakthroughs in domestic substitution.
Founded in 2016, CXMT is one of the few domestic IDM original manufacturers with full-process capabilities in DRAM chip R&D, design, manufacturing, and sales. It serves as a core vehicle for filling the high-end storage gap in the national integrated circuit layout.
For years, the global DRAM market has been an oligopoly dominated by three overseas companies: Samsung, SK Hynix, and Micron. These firms hold over 90% market share. The A-share market has historically lacked a core original manufacturer with independent mass production capabilities. It offered only small-cap targets in storage modules and design. This left a persistent gap in the valuation system. CXMT's listing fills precisely this industry void.
Image source: CXMT
From an industry cycle perspective, Sinolink Securities analysis suggests the global storage sector is currently standing at the starting point of a new super up-cycle. This echoes the industry bull markets driven by technological iterations in 2008 and 2016. With the implementation of large AI models, the market is generating massive, rigid incremental demand for storage. The scaled construction of computing infrastructure is continuously pushing up the value and penetration rates of storage products.
Institutions project a compound annual growth rate of 30.56% for the global storage chip market from 2025 to 2030. By 2030, the industry's overall scale is expected to break through 571 billion yuan. This indicates extremely strong certainty for long-term growth in this sector.
Riding this high sentiment, CXMT's performance is seeing leapfrog growth. For the first half of 2026, it expects revenue between 110 billion and 120 billion yuan. This represents a staggering year-on-year surge of 613% to 677%. Net profit attributable to shareholders is projected between 50 billion and 57 billion yuan. That is an increase of up to 2,544%.
That explosive growth rate provides the fundamental support for long-term capital accumulation. Currently, CXMT boasts a mature product structure. LPDDR and DDR series account for 66% and 32% respectively. These products comprehensively cover mainstream scenarios for mobile, PC, and server markets. Its market share has climbed from 4% in the second quarter of 2025 to 8% in the first quarter of 2026. It is continuously eroding the monopoly pattern of overseas giants.
Huafu Securities offers a differentiated view based on corporate barriers and valuation. In the era of AI computing power, storage chips are the core underlying hardware for computing operations. Industry demand possesses long-term rigid attributes. Combined with the accelerated implementation of domestic semiconductor substitution, CXMT is the only local leader achieving DRAM mass production. It uniquely enjoys a triple bonus: high industry growth, rising global share, and domestic substitution breakthroughs.
Valuation System Overhaul, Tech Investment Logic Shifts
Unlike the wave of small-cap tech stocks that pulled back in July, CXMT possesses core technological barriers. Those stocks relied solely on thematic hype without substantive earnings support. CXMT also has scaled production capacity and explosive performance that continues to deliver. It is a scarce core asset of hard technology in the current A-share market. This leaves ample room for future valuation reconstruction and market cap expansion.
Regarding the market buzz about the "siphon effect" of this super IPO, the current rally shows clear structural characteristics. It has not triggered a systemic drain across the entire market.
The recent pullback in small-cap tech stocks stems partly from mutual funds rotating capital to participate in CXMT's offline IPO subscription. It also reflects a combination of factors. These include overextended gains in the tech sector during the first half, volatility from quantitative trading, and adjustments in overseas semiconductors. Overall, however, the diversion of funds is not a sign of liquidity drying up market-wide. It represents a style reconstruction within the tech sector itself.
Huafu Securities notes that this capital flow is a typical structural swap. Market funds are continuously flowing out of small-cap semiconductor stocks and low-end storage module targets. These targets lack core technology and rely on pure concept speculation. Capital is flooding into hard-tech leaders like CXMT. These firms possess original manufacturer barriers, high earnings growth, and premium track positioning. However, defensive sectors such as consumer goods, high-dividend stocks, and finance remain completely unaffected. The broader market is running smoothly with no risk of systemic decline.
Image source: CXMT
Sinolink Securities concludes that CXMT's listing has fundamentally reshaped the valuation system of the A-share semiconductor industry. It ends the market's long-standing obsession with "chasing small caps, chasing themes, and chasing elasticity."
Going forward, market capital, industry resources, and attention will continue to concentrate on head original manufacturers with core capacity and hard technology. Small-cap thematic stocks lacking fundamental support will see a continued valuation washout. A-share tech investment is officially entering a new phase. This phase prioritizes technological barriers, earnings realization, and long-term growth value.
Overall, CXMT ascending to the top of the A-share market cap list represents the capital market's high recognition of the indigenous rise of domestic hard technology. In the short term, the market will continue to see internal valuation switching and structural divergence within the tech sector. From a medium-to-long-term perspective, it will continue to drive the coordinated upgrading of upstream and downstream chains. This includes domestic semiconductor equipment, materials, and components. The process accelerates self-reliance in the storage industry. It also establishes CXMT as a core pricing anchor for the A-share hard technology sector.
