Chinese Chipmaker CXMT’s Index Inclusion to Trigger Billions in Passive Buying

Chipmaker CXMT Corp. (688825.SH) has become the largest constituent in two major Shanghai stock indexes just three months after its market debut, potentially attracting billions of yuan in passive inflows.

CXMT now accounts for 4.7% of the Shanghai Composite Index and 15.7% of the STAR Composite Index, ranking first by weight in both. 

But the relatively small size of ETFs tracking the two benchmarks limits potential passive buying to about 2.5 billion yuan ($375 million), despite CXMT’s market value exceeding 3 trillion yuan.