Today, it’s all about 长鑫 (Changxin) everywhere. I’ll join the fun too and talk about this “new stock king.”

Up 470% in a day—straight to legend
On July 27, 长鑫科技 (688825) was officially listed on the STAR Market. The issue price was 8.66 yuan. It opened at 49.50 yuan, closed at 49 yuan, and surged about 470% on its first day. Its market cap jumped to 3.28 trillion yuan at once, surpassing 工商银行 and becoming the real “new stock king” of A-shares.
What’s this company behind the scenes?
It is China’s largest DRAM memory chip manufacturer, headquartered in Hefei. Founded in 2016, its founder 朱一明 is a Tsinghua alumnus and started a business after returning from Silicon Valley. In the first quarter, revenue was 50.8 billion yuan, up 700% year over year; net profit in the first quarter was 24.7 billion yuan. Its global market share rose from 3% last year to 8%. The storage demand explosion driven by the AI wave, along with policy tailwinds for domestic substitution, has put 长鑫 on the fast track.
But if you cool down and think about it, a few numbers are worth noting
First, the first-day turnover rate is as high as 66.4%. Historically, even 中石油’s first-day turnover was only 51.58%. This indicates that the shares changed hands extremely aggressively, with many oversubscribed investors cashing out at high levels.
Second, 长鑫’s current trailing P/E is about 33x, while peers in the industry—Samsung and SK hynix—are only 6–7x, and domestic memory peers are also just 8–10x. The valuation is clearly higher than both international and domestic peers.
Third, memory chips are a classic cyclical industry—price hikes, capacity expansion, oversupply, price cuts, and the cycle repeats. Current high profits are built on storage prices rising substantially; once supply and demand swings the other way, profit fluctuations become almost inevitable. Also, in high-end technologies like DDR5 and HBM, 长鑫 still has an objective gap compared with Samsung and SK hynix.
My simple take
There’s no doubt about 长鑫’s strategic value—China’s only IDM DRAM leader, flying the banner of storage independence and controllability. But a market cap of 3 trillion yuan and a valuation of 33x have already fully priced in optimistic expectations for the coming years in one go. Six days ago, tech stocks were getting slammed and sold off in a panic; six days later, the market is awarding this same-sector company such an extreme “price tag.” The market’s memory really is short.
Long-term, I’m bullish. But if you chase into this level in the short term, the risk isn’t small. The chip industry’s story is never short of reversals—just don’t let it turn into another “petroleum enterprise of a generation.”