Tech Brief (July 28): Chipmaker CXMT Surges 470% in STAR Market Debut

Chipmaker CXMT surges over 470% in STAR Market debut

Shares of CXMT Corp. skyrocketed more than 470% in their Shanghai debut Monday, propelling the memory chipmaker to a 3.3 trillion yuan ($487 billion) valuation and crowning it China’s most valuable listed stock. The colossal listing — the STAR Market’s largest ever after raising 57.6 billion yuan — siphoned liquidity from the broader market, dragging down major Chinese indexes and sparking a semiconductor sell-off. The surge minted immense windfalls for early backers. The Hefei government, CXMT’s largest shareholder group, sits on an estimated 1.16 trillion yuan paper profit. Alibaba, which bought in during later funding rounds, sits on a paper profit of more than 156 billion yuan.