#长鑫成交901亿创A股历史纪录 The biggest IPO in the history of the STAR Market 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 the market opened, the stock price surged by more than 450%. The company’s market capitalization surpassed the 3 trillion yuan threshold, setting an A-share historical record, and becoming the first hard-tech enterprise to join the trillion-yuan market-cap club immediately upon opening. This event carries landmark significance for the 🇨🇳 capital markets. It signals that the A-share market is gradually saying goodbye to the era in which large-cap companies were dominated by banks and traditional consumer industries. It also reflects a deep adjustment in China’s industrial structure, fundamentally changing the composition of the capital market. In this context, it can also be described as a vivid, memorable chapter in the development history of the 🇨🇳 semiconductor industry.

Trillion-yuan market cap: what it implies
Changxin Technology’s entry into the capital markets contains profound meaning that is worth exploring in depth. A thought-provoking question naturally emerges: in the boom cycle of storage demand led by artificial intelligence, are storage chips still typical cyclical stocks? Looking back over decades, the DRAM (dynamic random access memory) industry has long been known for its strong cyclicality—imbalances between supply and demand directly cause sharp price fluctuations, and corporate profits also swing violently as a result. Even giants like Samsung have previously fallen into loss traps, which has been the main reason many investment institutions were cautious about Changxin Technology and were unwilling to step in lightly.

However, the rapid development of artificial intelligence is reshaping the industry’s fundamental logic. In the past, applications for storage chips were mainly concentrated in consumer electronics and conventional servers. Their demand was significantly influenced by consumer cycles, showing clear volatility. Today, storage chips have evolved into a key component of computing infrastructure. The demand from large language model training and inference, as well as AI data centers, demonstrates sustained rigidity and rapid growth momentum. “Previously, the market generally regarded storage chips as a highly cyclical industry and typically used price-to-book (PB) for valuation; but with the AI wave sweeping through, the industry’s operating logic has shifted. Its demand is no longer driven purely by the seasonal upturns and downturns of consumer electronics, and it is gradually moving toward a growth-oriented track—so valuation could consider using price-to-earnings (PE).” Zhang Wei elaborated further. This judgment is also being confirmed by the market. For example, this year Changxin Technology’s quarterly profit has already surpassed the total profit of all companies listed on the STAR Market. Such a scale of performance naturally prompts the market to re-examine 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 capitalization is often the most direct reflection of its industrial structure. For a considerable period in the past, the top ten by market cap in China’s A-share market were mostly giants in traditional industries such as finance, energy, and consumption. In recent years, with the market caps of a batch of technology companies such as CATL (Contemporary Amperex Technology) and InnoLux? (Actually “G”)—along with others, rising continuously—this behind-the-scenes shift reflects the capital market’s reappraisal of the value of China’s hard-tech assets. It also clearly shows that China’s economic growth momentum is accelerating its conversion toward a technology-driven and innovation-driven direction. Turning to the global view, in the late 1980s and 1990s, the top ten market-cap lists of developed countries such as the United States and Japan were also dominated by traditional industry companies like finance, oil, autos, and electricity. But the two countries’ subsequent paths diverged greatly. The information technology revolution reshaped the U.S. industrial landscape; the rise of technology giants such as Microsoft, Apple, Amazon, Google, and NVIDIA not only supported America’s industrial leadership for decades thereafter but also fundamentally changed the distribution of value in the capital markets. Entering the AI era, the top ten positions in U.S. stock market capitalization are almost entirely occupied by technology companies. By contrast, Japan: during its economic boom period in the 1980s, about half of the companies in the global top ten by market cap were Japanese banks. After the bursting of the bubble economy, its industrial growth long lacked core driving forces. Changes in the market-cap rankings are the strongest evidence of industrial iteration.

On the first day of listing, Changxin Technology already topped the A-share market capitalization rankings. Looking ahead, top hard-tech enterprises such as Yangtze Memory will also continue to list on the capital markets. In Zhang Wei’s view, the listing of these companies is not only about adding a few more large-cap companies to the A-share market. More importantly, it will reshape the entire market’s head-market-cap structure, making China’s most core and most scarce technological assets truly become the focus of attention in the capital markets. For a long time, there has been a common perception in the primary market: renminbi (RMB) funds often focus on investing in manufacturing, semiconductors, equipment, materials, and related fields. These investments have long cycles, slow returns, and lack “sexy” qualities. Compared with dollar funds, their investment stories seem to lack a bit of vivid intensity. “Changxin Technology’s successful listing can be seen as a ‘rectification battle’ for local RMB funds.” It powerfully proves that as long as they are rooted in local industrial soil, uphold the philosophy of deep cultivation of the industry, and accompany entrepreneurs who combine hands-on execution with innovation courage to grow together, RMB funds are fully capable of delivering investment examples that can rival—or even surpass—those of dollar funds, while navigating economic and industry cycles.

For Foundation Capital, the significance of this investment goes far beyond financial returns alone. As Zhang Wei said, Changxin Technology’s listing will greatly boost overall confidence in the development of domestic hard-tech industries and encourage more hard-tech entrepreneurs to dare to challenge the key core technology fields. “The golden age of hard-tech investing is just around the corner and gaining momentum.” Looking forward, Foundation Capital’s long-term strategy remains unchanged: continuing to focus on hard-core technologies 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 Foundation Capital, which is also a remarkable 25 years for the 🇨🇳 venture capital industry. Looking back, Zhang Wei感慨万千: “Our generation has witnessed profound social changes firsthand, and within them lie enormous opportunities—this gives us unparalleled advantages and luck.” He firmly believes that the rise of 🇨🇳 new economy enterprises is an inevitable outcome of history. “If you always remain in traditional industries and are deeply bound to real estate and related sectors, you may grow increasingly pessimistic about the future. But if you invest in emerging technology fields, what you will see is a different, hopeful picture.” $CXMT ‌