China’s State Banks Sit on Massive Paper Gains After Chipmaker CXMT’s Blockbuster IPO

Five of China’s major state-owned banks are sitting on massive paper gains after their early bets on domestic memory chipmaker CXMT Corp. (688825.SH) culminated in a blockbuster trading debut.

The IPO propelled CXMT past Industrial and Commercial Bank of China Ltd. (601398.SH) to become the most valuable stock on the Chinese mainland market Monday. 

The windfall highlights how Beijing’s push to fund strategically critical semiconductor projects is starting to show lucrative paper returns for state backers.