China memory leader "CXMT" soars 465% on its first day of trading after listing! AI chip boom brings big wins for both public and private funds, with ETFs under E Fund making a profit of 6.8 billion

According to a report by Shanghai Securities News, China’s memory chip leader “CXMT” officially listed on the Sci-Tech Innovation Board of the Shanghai Stock Exchange today (27). Its stock surged more than 465% at the close on its first day. Benefiting from the global AI computing power demand boom and the effects of domestically manufactured semiconductor substitution, this IPO attracted a large number of public and private fund managers to participate in the offline offering. Among them, the Vanguard Fund had an unrealized gain of more than RMB 6.8 billion on paper, while private funds in the hundred-billion-yuan class such as Joy Capital also emerged as major winners, becoming the biggest beneficiaries of this “IPO subscription bonanza.”
(Background: CXMT’s listing saw a 471% jump, becoming the market-cap king in A-shares! Nomura called a target of 116 yuan, and a “whale” took a 17.26 million USD short bet)
(Additional background: China’s “Ushu Technology” filed for a registered IPO! 73-day lightning-fast clearance, aiming for the No. 1 A-share robotics stock)

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• Surges 465% on the first day; winning the allotment makes a profit of 20k RMB
• Public and private fund institutions make a killing; Vanguard Fund’s unrealized gain exceeds 6.8 billion
• AI computing power expansion; mid- to long-term hardware trends draw attention

Against the double backdrop of the China-U.S. technology war and the explosive growth in global artificial intelligence (AI) computing power demand, Chinese semiconductor “national team” indicator companies have found themselves at the center of a capital-market frenzy. At Taipei time on July 27, China’s largest general-purpose DRAM (dynamic random-access memory) company, CXMT, officially began trading and listed on the Sci-Tech Innovation Board. Its strong market performance, along with the astonishing profits earned by institutions behind the scenes, quickly made it the focus of attention across the financial world.

Surges 465% on the first day; winning the allotment makes a profit of 20k RMB

CXMT (code: SH688825) set its offering price at RMB 8.66 per share. After the market opened today, amid frantic demand, the intraday rally reached an astonishing 535.45% at its peak. As of the close, the share price closed up 465.82%, at RMB 49. If you assume one Sci-Tech Innovation Board lot of 500 shares, a lucky investor could earn about RMB 20,170 in profit in a single day.

As the only company in China currently capable of large-scale mass production of general-purpose DRAM, CXMT’s production scale ranks first in China and fourth globally. Its product lineup covers DDR4/DDR5 needed for PCs and servers, as well as LPDDR5X used in mobile devices. In 2025, its global market share is expected to reach about 7% to 8%. With this super unicorn’s performance turning from loss to profit in the first quarter of this year, the company’s listing is seen as an important milestone for China’s push for self-reliance and strength in technology.

Public and private fund institutions make a killing; Vanguard Fund’s unrealized gain exceeds 6.8 billion

This IPO is not only a carnival for retail investors, but also a “bonanza” for top institutional investors to subscribe for new shares. According to statistics, a total of 100 public fund managers (with 5,507 products under them) secured allocation successfully through the offline offering, for a combined allotment of 20k shares, worth RMB 20k. Among them, the Vanguard Fund received the highest allocation (about RMB 1.25B), with an unrealized gain of more than RMB 6.8 billion on the day; 18 institutions including Southern Fund and Industrial and Commercial Rui Trust also made it into the “100-million-yuan club,” each double-digit winning.

For private funds, performance was equally impressive. A total of 112 private funds (with 2,458 products under them) received an allotment of 161 million shares. Quant heavyweight Joy Capital received the top allocation of about RMB 133.4 million, with an unrealized gain of more than RMB 600 million in a single day. Ningbo Genesis Quant, Arisu Investment, Frontier Century, and other hundred-billion-yuan private funds followed closely behind. Data shows that hundred-billion-yuan private funds hold an absolute advantage in both the number of shares allotted and the allotted amounts, accounting for as much as 90%.

AI computing power expansion draws attention to mid- to long-term hardware trends

Regarding market outlook after CXMT’s listing, multiple institutions that participated in the allocation expressed a high level of optimism. Cathay Fund stated that, as a domestic memory industry leader, CXMT’s listing is expected to accelerate capital expenditures, continuing to drive demand for upstream equipment and materials. The global expansion of AI computing power has propelled dual-line capacity expansion in advanced processes and memory. Combined with the benefits of domestically produced substitution, the growth potential for domestic equipment companies is considered substantial.

Xuan Yuan Investment and Zhongyi Investment also analyzed that, as overseas technology leaders adjust upward their capital expenditure plans and the number of users of large models shows explosive growth, the AI industry chain will remain the main line of the market going forward. With the underlying industry trends remaining solid, technology stocks that have real earnings and competitive moats are expected to continue to realize their long-term value.