#长鑫成交901亿创A股历史纪录 The largest IPO in the history of the STAR Market has arrived

Today (July 27), ChangXin Technology Group Co., Ltd. (abbreviated as “ChangXin Technology”) successfully listed and began trading on the STAR Market. In this initial public offering, ChangXin Technology issued shares at 8.66 yuan per share. After the opening bell, the share price surged more than 450%. The company’s market value surpassed the 3 trillion yuan threshold, setting a historical record for A-shares, and becoming the first hard-tech enterprise to join the trillion-yuan market cap club immediately upon opening. This event holds landmark significance for 🇨🇳’s capital markets. It signals that A-share markets are gradually bidding farewell to an era where large-cap enterprises were dominated by banks and traditional consumer industries. It also reflects deep adjustments in China’s industrial structure, fundamentally changing the composition of the capital markets. In this context, it can also be seen as a vivid, milestone chapter in the development history of the 🇨🇳 semiconductor industry.

Trillion-yuan market cap: lessons
When ChangXin Technology landed in the capital market, the deeper implications behind it are worth exploring. A thought-provoking question follows: during the explosive demand cycle for storage driven by artificial intelligence, are storage chips still a typical cyclical stock? Looking back at decades past, the DRAM (dynamic random-access memory) industry has long been known for its strong cyclicality. Imbalances in supply and demand directly lead to sharp price fluctuations, and corporate profits swing wildly as well. Even giants such as Samsung have fallen into loss traps for this reason, which was the main cause for many investment institutions to treat ChangXin Technology cautiously and not want to step in easily.

However, the rapid development of artificial intelligence is reshaping the industry’s fundamental logic. In the past, the application scenarios for storage chips were mainly concentrated in consumer electronics and conventional servers, and demand was heavily influenced by consumer cycles, showing clear volatility. Today, storage chips have evolved into a key component of computing infrastructure. The needs of large language model training and inference, as well as AI data centers, demonstrate sustained rigidity and rapid growth. “In the past, the market generally viewed storage chips as a strongly cyclical industry and typically used the price-to-book ratio (PB) for valuation; but with the AI wave sweeping through, the industry’s operating logic has changed. Its demand is no longer solely driven by the high and low seasons of consumer electronics, and it is gradually moving toward a growth track, so it is possible to value it using the price-to-earnings ratio (PE).” Zhang Wei explained further. This judgment is also being validated by the market. For example, in a single quarter this year, ChangXin Technology’s profits have already surpassed the total profits of all companies on the STAR Market. With performance of such scale, it naturally prompts the market to rethink its valuation logic. Of course, ChangXin Technology’s listing carries even more far-reaching strategic significance.

A country’s ranking of listed companies by market cap is often the most direct reflection of its industrial structure. For a considerable period in the past, the top ten companies by market cap in China’s A-share market were mostly giants in traditional industries such as finance, energy, and consumption. In recent years, as a group of technology companies—including CATL and GigaDevice—have seen their market caps rise steadily, this behind-the-scenes shift reflects the capital market’s renewed reassessment of the value of China’s hard-tech assets, and clearly shows that the growth engine of China’s economy is accelerating its transition toward technology-driven and innovation-driven directions. If we broaden our view globally, the top-ten market-cap lists in developed countries such as the United States and Japan in the 1980s and 1990s were also led by traditional industries like finance, oil, autos, and power. But the two countries’ subsequent development paths diverged greatly: the information technology revolution reshaped the U.S. industrial landscape. The rise of tech giants such as Microsoft, Apple, Amazon, Google, and NVIDIA not only supported America’s industrial leadership for decades afterward, but also fundamentally changed the distribution of value in the capital market. In the AI era, the top-ten spots in the U.S. stock market by market cap are almost entirely occupied by technology companies. In contrast, in Japan, during the peak of its economy in the 1980s, half of the global top-ten market-cap companies were Japanese banks. After the bursting of the bubble economy, Japan’s industrial growth long lacked core driving forces. The changes in the market-cap rankings are the strongest evidence of industrial iteration.

On the first day of trading, ChangXin Technology already ranked first in A-share market cap. Looking ahead, top hard-tech enterprises such as YMTC (Yangtze Memory Technologies Co., Ltd.) are also expected to continue listing on the capital markets. In Zhang Wei’s view, these companies’ listings will not only add a few more large-cap companies to the A-share market; more importantly, they will reshape the entire market’s top market-cap structure, so that China’s most core and most scarce technological assets become the true focus of attention in the capital market. For a long time, there has been a common perception in the primary market: RMB funds often focus on investing in manufacturing, semiconductors, equipment, materials, and similar sectors. The investment cycle is long, returns are slow, and it lacks “sexy” appeal. Compared with USD funds, their investment stories seem to lack a certain passionate flair. “The successful listing of ChangXin Technology can be seen as a ‘rectification battle’ for domestic RMB funds.” It powerfully proves that, rooted in local industrial soil and guided by a philosophy of deep industry engagement, RMB funds are fully capable of delivering investment case studies that can match—and even surpass—those of USD funds by riding out economic and industry cycles alongside founders who bring practical execution and innovation courage.

For Cygent Capital (Jiceng Capital), the significance of this investment goes far beyond financial returns. As Zhang Wei said, the listing of ChangXin Technology will greatly boost domestic hard-tech industry confidence as a whole, encouraging more hard-tech entrepreneurs to dare to take on challenges in key core technology areas. “The golden age of hard-tech investment is just beginning.” Looking forward, Cygent Capital’s long-term strategy remains unchanged: continuing to focus on hard-tech fields such as semiconductors, artificial intelligence, commercial space, and quantum technology, and helping domestic core technologies achieve breakthroughs from nothing to something.

This year marks the 25th anniversary of Cygent Capital, which is also a dramatic 25 years for 🇨🇳 the venture capital and entrepreneurship investment industry. Looking back, Zhang Wei reflects with emotion: “Our generation personally experienced profound social changes, and within it there were immense opportunities—this gives us incomparable advantages and good fortune.” He firmly believes that the rise of 🇨🇳 new-economy enterprises is an inevitable outcome of history. “If you’re always in traditional industries and deeply tied to industries related to real estate, you may become increasingly pessimistic about the future. But if you throw yourself into emerging technology fields, what you’ll see is another scene full of hope.” $CXMT