#长鑫成交901亿创A股历史纪录 The biggest IPO in China’s STAR Market ever is born

Today (July 27), Changxin Technology Group Co., Ltd. (abbreviated as “Changxin Technology”) successfully listed on the STAR Market. In this initial public offering, Changxin Technology issued shares at a price of 8.66 yuan per share. After trading began, the share price surged by more than 450%. The company’s market cap surpassed the $30 trillion mark, setting an A-share historical record, and becoming the first hard-tech company to enter the “ten trillion market cap club” right at the open. This event carries landmark significance for China’s capital markets. It signals that the A-share market is gradually moving away from an era where large-cap companies 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 market. In this moment, it can also be seen as a vivid chapter in the development history of China’s semiconductor industry.
A lesson from a trillion-yuan market cap
Changxin Technology’s debut on the capital market contains profound implications worth exploring in depth. A thought-provoking question then comes to the fore: during the explosive cycle of storage demand led by artificial intelligence, do memory chips still qualify as typical cyclical stocks? Looking back over decades past, the DRAM (dynamic random access memory) industry has long been known for its strong cyclicality—imbalances between supply and demand directly lead to major price swings, and corporate profits rise and fall sharply as well. Even giants like Samsung have been dragged into loss situations because of this, which is precisely the main reason many investment institutions in the past were cautious about Changxin Technology and reluctant to get involved easily.
However, the rapid development of artificial intelligence is reshaping the industry’s underlying logic. In the past, the main application scenarios for memory chips were concentrated in consumer electronics and conventional servers, and demand was clearly influenced by consumer cycles, showing obvious volatility. Today, memory chips have evolved into a key component of compute infrastructure. The needs of large language model training and inference, as well as AI data centers’ demand for them, have demonstrated sustained rigidity and rapid growth. “Previously, the market generally treated memory 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 already shifted. Its demand is no longer solely driven by the ebb and flow of consumer electronics seasons, and it is gradually moving toward a growth track. Therefore, it may be possible to value it using the price-to-earnings ratio (PE).” Zhang Wei further explained this point. This judgment is also being validated by the market. For example, Changxin Technology’s profit in a single quarter this year already exceeds the total profits of all companies on the STAR Market. With performance on such a scale, it naturally prompts the market to reconsider the basis for its valuation logic. Of course, Changxin Technology’s listing also carries even more far-reaching strategic significance.
A country’s ranking of listed company market caps often reflects its industrial structure most directly. For a fairly long period, the top ten companies by market cap in China’s A-share market were mainly traditional industry giants such as finance, energy, and consumer sectors. In recent years, as a group of technology firms—including CATL and Ennoconn (Mie?) Xu Chuang—have seen their market caps climb continuously, it reflects the capital market’s reassessment of the value of China’s hard-tech assets, and clearly shows that China’s economic growth momentum is accelerating its shift toward technology-driven and innovation-driven development. If we broaden our view to the world, in the top ten market-cap lists of developed countries such as the United States and Japan in the 1980s and 1990s, traditional industries like finance, oil, automobiles, and electricity also dominated. But the two countries’ subsequent development paths turned out very differently: the information technology revolution reshaped America’s industrial landscape. The rise of tech giants such as Microsoft, Apple, Amazon, Google, and NVIDIA not only supported the United States’ industrial leadership for decades afterward, but also fundamentally changed how value is distributed across the capital market. Entering the AI era, the top ten spots in the U.S. stock market’s market cap are now almost entirely occupied by technology companies. By contrast, in Japan, during its economic heyday in the 1980s, half of the global top ten by market cap were Japanese banks. After the bursting of the bubble economy, Japan’s industrial growth long lacked core driving forces. Changes in the market-cap rankings are precisely the strongest evidence of industrial iteration.
Changxin Technology ranked first in market cap on the first day of its listing. Looking ahead, top hard-tech enterprises such as Yangtze Memory will also continue to enter the capital market. In Zhang Wei’s view, these companies’ listings are not only about adding a few more large-cap companies to the A-share market. More importantly, they will reshape the entire market’s head market-cap structure, so that China’s most core and scarce technical assets truly become the focus of the capital market. For a long time, there has been a common belief in the primary market: RMB funds often focus on investing in manufacturing, semiconductors, equipment, materials, and other areas. Such investments have long cycles, slow returns, and lack the “sexy” quality. Compared with U.S. dollar funds, their investment stories always seem to be missing some vivid flair. “Changxin Technology’s successful listing can be seen as a ‘rehabilitation battle’ for local RMB funds.” It powerfully proves that, rooted in local industrial soil and adhering to the philosophy of deep cultivation of the industry, RMB funds are fully capable of creating investment cases that can rival—and even surpass—those of U.S. dollar funds, by riding through economic and industry cycles.
For Grit Capital, the significance of this investment goes far beyond financial returns alone. As Zhang Wei said, the listing of Changxin Technology will greatly boost overall confidence in the development of domestic hard-tech industries, and encourage more hard-tech entrepreneurs to dare to take on challenges in key core technology fields. “The golden age for hard-tech investment is just getting started.” Looking forward, Grit Capital’s long-term strategy remains unchanged: it will continue to focus on hard-core technology areas such as semiconductors, artificial intelligence, commercial space, and quantum technology, helping domestic core technologies achieve breakthroughs from nothing to something.
This year marks the 25th anniversary of Grit Capital’s founding, and it is also a sweeping 25 years for China’s venture capital industry. Looking back, Zhang Wei said with deep emotion: “Our generation has witnessed profound social changes firsthand, and within them lies enormous opportunity. This has given us unparalleled advantages and luck.” He firmly believes that the rise of 🇨🇳 new economy enterprises is historically inevitable. “If you always stay in traditional industries, deeply tied to industries related to real estate, you may become increasingly pessimistic about the future. But if you immerse yourself in emerging technology fields, what you will see is a different, hopeful landscape.” $CXMT ‌