#长鑫开盘跌7.7% Changxin Technology (688825) opened with a steep drop of 7.7%, a sharp correction on the second day after the Sci-Tech Innovation Board new stock listing, driven by extreme sentiment and external shocks. This is not a deterioration in fundamentals, but a rational return after the market became overheated.

The core reason lies in massive profit-taking. Changxin Technology’s performance on its first day after listing was astonishing: the issue price was only 8.66 yuan, it closed up 465.82% on the first day, the market value reached 3.28 trillion yuan, the trading value exceeded 140 billion yuan, and the turnover rate was as high as 66.4%. With low-cost IPO subscription funds and short-term speculators holding huge unrealized gains, they concentrated their sell-offs at the opening on the next day, directly causing the share price to gap down from 49.00 yuan to 45.22 yuan.

At the same time, the external environment also played a role in amplifying the move. Overnight, U.S. stocks including Micron and SK hynix, along with other memory-chip stocks, all weakened collectively. This was compounded by market panic sparked by financing for Nvidia’s AI infrastructure and a broad selloff in the stock markets of Japan and South Korea, directly hitting sentiment in China’s A-share semiconductor sector.

However, after the plunge, buy orders quickly poured in, and the share price soon turned positive again, showing the market had not denied its long-term value. As the domestic industry leader and the only large-scale DRAM mass-production enterprise, its products such as DDR5 and LPDDR5X have already reached international advanced levels, and it will benefit in the long run from growth in storage demand driven by AI compute power.

This volatility is a typical case of a value return after a new stock’s irrational frenzy. It reminds investors that even the best companies need to be matched with a reasonable price—especially in the first five trading days, when there is no daily limit on price movement—so staying rational is even more important.