#长鑫开盘跌7.7% Changxin Technology is down today. This is not due to a deterioration in the company’s fundamentals, but rather a cooling of sentiment and a return to rationality after a huge surge on its first day of listing. The core reasons can be summarized into the following three points:

Profit-taking led by concentrated selling: The turnover rate on the first day was extremely high. Large amounts of low-cost lucky-lot capital chose to sell off in a concentrated manner at the opening on the following day, creating a massive sell pressure.

Valuation reaching the upper end of expectations: By the close of the first day, the market capitalization had already reached the top end of the “institutional neutral valuation” range. In the short term, upside room is limited, and the willingness to chase the price has weakened.

Concerns that the industry cycle has peaked: The market expects the DRAM price-rise cycle to be nearing its ceiling, and downstream demand is weak, leading investors to take a wait-and-see attitude about the sustainability of its future earnings.

Overall, this is a normal pullback after a battle between large amounts of capital, not a trend reversal.