On July 27, the Chinese stock market experienced a broad increase, largely attributed to the successful debut of CXMT (Changxin Memory Technologies), the country's largest DRAM manufacturer.
The Shanghai Composite Index closed up 1.16% at 3,858.25, while the Shenzhen Component Index rose 2.72% to 14,148.73, and the ChiNext Index increased by 3.16% to 3,590.79.
The highlight of the day was undoubtedly CXMT's listing on the Shanghai Stock Exchange's STAR Market. The stock opened at 49.88 yuan, a staggering 476% increase from its initial public offering price of 8.66 yuan, and closed at 49.00 yuan, marking a 465.8% rise.
With this performance, CXMT surpassed the Industrial and Commercial Bank of China to become the company with the largest market capitalization on the Chinese stock market, reaching 3.28 trillion yuan compared to the bank's 2.76 trillion yuan.
Chinese financial analysts and media have hailed CXMT's listing as a symbolic event for the country's semiconductor industry. It reflects not just a single company's IPO but also a surge of positive investor sentiment regarding the growth of China's semiconductor sector, the localization of its AI supply chain, and technological self-sufficiency.
Reports indicate that CXMT plans to invest the funds raised from the IPO heavily into the HBM (High Bandwidth Memory) sector. There are also expectations that the successful IPO will accelerate research and development in this area.
Additionally, a temporary easing of hostilities between the U.S. and Iran, along with a drop in oil prices—Brent crude fell 4.7% and WTI dropped 5.0%—contributed to the upward trend in the Chinese stock market. The decline in oil prices alleviated inflation concerns, leading to increased buying activity across the market.
Chen Guo, an analyst at Dongfang Zhiyuan, stated, "We view the medium-term economic trends and business potential of China's AI value chain positively. Even if adjustments occur in this sector, we do not see it as pessimistic and believe it should be viewed as an opportunity to increase holdings in leading technology companies."
Stocks related to brain-computer interfaces (BCI) also saw significant gains, with companies like Aipeng Medical and Nanjing Panda reaching their upper price limits.
In a related development, U.S. startup Science Corporation received approval to sell retinal chips in the EU to assist patients with 'glaucoma-associated' vision recovery. This marks the first instance of a U.S. brain-computer interface company receiving market approval for such equipment, with plans to eventually launch brain implant devices.
The battery sector also showed strength, with Wanli Co. and Longpan Technology hitting their upper price limits.
In July, sales of new energy vehicles in China are expected to reach 980,000 units, raising the penetration rate of new energy vehicles in the Chinese automotive market to 64.5%. Additionally, the overall production plan for the Chinese battery industry in August is projected to increase by 7.4% from the previous month to 304 GWh, indicating continued growth.
Meanwhile, the People's Bank of China announced a yuan exchange rate of 6.7911 yuan per dollar, a decrease of 0.0028 yuan from the previous trading day, reflecting a 0.04% increase in the value of the yuan.
* This article has been translated by AI.
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