Changxin Technology surged more than 470% at market open, topping the A-share market, as record trading volumes caused the system to lag temporarily

Author: JIN 10 Data

On July 27, China’s homegrown DRAM leader ChangXin Technology officially listed on the Shanghai Stock Exchange STAR Market. The stock opened at 49.50 yuan, up 471.59% from the 8.66 yuan发行 price. Based on the total shares outstanding after发行 of about 66.88B shares, the opening total market cap was about 3.31 trillion yuan, surpassing Industrial and Commercial Bank of China and ranking first among A-share listed companies by total market cap.

For investors who took part in this subscription, ChangXin Technology’s performance on its first trading day also brought relatively high returns. According to the issuance arrangement, the winning lot number in the online offering corresponds to 500 shares; using the opening price, the profit per lot was about 20,420 yuan. Previously, the final online winning rate for ChangXin Technology was 0.47141739%, making it one of the new stocks that have drawn market attention since the beginning of this year.

The listing also set a new record for a large IPO on the STAR Market. After发行, ChangXin Technology’s total shares outstanding were about 33.1k shares. In the initial listing period, the number of tradable shares without selling restrictions was about 66.88B shares, accounting for about 6.73% of total shares after发行. Because the proportion of shares available for trading in the early stage was limited, concentrated buy orders pushed the share price up rapidly.

As of around 10 a.m., the stock’s trading value exceeded 100 billion yuan, setting a record for the highest single-stock daily trading value on A shares. The turnover rate was over 48%. It is understood that some investors reported that not long after the open, trading lagged, making it impossible to trade and also impossible to cancel orders; shortly afterward, trading began to recover gradually. A person in charge at a brokerage business outlet said that there indeed was lag, “There has never been a new stock with such a huge trading volume.”

ChangXin Technology has attracted attention primarily because of the memory-chip track it is in. As an important company in China’s DRAM sector, the firm has long been developing and manufacturing dynamic random access memory. The market views it as an important participant in China’s domestic memory industry chain. With this entry into the capital markets, it not only provides financing channels for the company’s future capacity expansion and technology R&D, but also becomes an important window for observing the development of China’s memory-chip industry.

Against the backdrop of ongoing progress in building AI infrastructure, global market demand for high-performance computing, servers, and related storage products has continued to draw attention. As a crucial link in the data-processing chain, memory chips are also a key area in competition within the semiconductor industry.

With its market value breaking through 3 trillion yuan on its first day of trading, ChangXin Technology has entered the top tier of market capitalization rankings among A shares, prompting the market to begin reassessing the capital value of domestic semiconductor companies.

From the perspective of company development, the capital market’s high valuation reflects investors’ expectations for the growth space of China’s domestic storage industry. But at the same time, how to convert technological accumulation into sustained profitability remains a challenge the company needs to address.

Competition in the semiconductor industry depends not only on production capacity scale, but also involves process technology, product mix, customer coverage, and supply-chain capabilities. As competition in the global memory industry continues, whether ChangXin Technology can maintain growth in the future will depend on the speed of product iteration and the ability to increase market share.

ChangXin Technology received concentrated attention from funds on its first trading day, but early on, the price volatility of new STAR Market listings can be relatively large. According to trading rules, there is no limit on the daily rise-and-fall percentage for the first 5 trading days after the IPO listing, so investors still need to keep an eye on market trading changes and the company’s subsequent information disclosures.

The market’s focus will gradually shift from the first-day price increase to the company’s future operating performance, including factors such as capacity release, technological progress, changes in the industry cycle, and long-term profitability.