DRAM Maker ChangXin Targets $4.3 Billion For IPO
6 Min. Read Time
Key News
Asia rebounded in choppy trading, led by the AI hyperscalers' capex beneficiaries after their recent slump.
Two catalysts lifted Mainland China and Hong Kong's AI supply chain winners, i.e. the "picks and shovels", led by Mainland China’s semiconductor-heavy Science & Technology (STAR) Board, which gained +8.41%.
- Dynamic random access memory (DRAM) chip maker ChangXin Memory Technologies (CXMT) has started its STAR IPO process, expecting to raise $4.3 billion at a valuation of $42.0 billion.
- Yesterday’s speech by President Xi at the concisely named 11th National Congress of the China Science and Technology Association at the National Science and Technology Award Conference heavily emphasized “high-level self-reliance in science and technology”.
- Chip maker Gigadevice gained +21.75% in Hong Kong and +10% in Mainland China after announcing that its first-half of 2026 net profit is expected to grow 1,099% to RMB 6.9 billion.
ChangXin is a competitor of SK Hynix, Samsung, and Micron. Although no IPO date has been set, subscriptions will be officially submitted on July 16th. The company is growing as it fills a void left by competitors' focus on high-end and expensive AI DRAM chips, as CXMT gobbles up market share in lower-end DRAM chips. This explains why Apple wants an exemption to buy its chips for iPhones and other electronic devices. Sina Finance noted “operating revenue of RMB110 billion to RMB120 billion in the first half of 2026, representing a year-on-year increase of 612.53% to 677.31%; net profit attributable to the parent company is expected to be RMB50 billion to RMB57 billion, representing a year-on-year increase of 2244.03% to 2544.19%.”
Hong Kong semiconductor and technology hardware stocks had a good day overnight, along with CATL, which gained +1.51%. Meanwhile, recent value winners, including banks and insurance, were lower, along with autos and non-ferrous metals. The Hang Seng Index closed above the 24,000 level.
Mainland financial media noted that Alibaba, which gained +0.47% on heavy volume, invested RMB 7.6 billion in CXMT, starting with a December 2021 investment and a June 2025 investment that would be worth RMB 130 billion, based on the IPO valuation. Alibaba had a healthy $281 million (HKD 2.21 billion) worth of net buying from Mainland investors via Southbound Stock Connect. Alibaba filed in Hong Kong that it bought 1,469,600 US-listed shares yesterday, bringing the 7-day buyback total to an impressive 29.79 million shares.
Tencent fell -1.92% on an analyst downgrade, though they bought back 1,065,000 shares. Mainland investors were a rare net sell in Tencent via Southbound Connect.
Baidu fell -2.72% despite making progress on its Kunlun AI chip unit, with a target valuation of $50 billion, which is higher than Baidu's $40 billion market capitalization! Baidu's Weixin AI large language model (LLM) controversially picked Norway to upset England.
Similar to Hong Kong, though with better breadth, the Mainland saw semiconductors and electronic equipment, communications equipment, and semiconductor materials all outperform. CATL, which gained +4.02%, also rallied, along with pharmaceuticals. After the close, Mainland-listed battery materials supplier Tinci Materials (002709 CH) fell -7.02% after announcing its first-half net profits will increase 907.84% to 1,019.82% year-over-year (YoY), which is between RMB 2.7 billion to RMB 3 billion.
June producer price index (PPI) increased 4.1% YoY in June, versus May's 3.9% and expectations of 3.9%. Chinas' consumer price index (CPI) came in at 1.0% in June, versus May's 1.2% and expectations of 1.1% as food, tobacco, alcohol, and dining prices all fell.
The Ministry of Commerce (MoC) held a lengthy press conference and reporter Q&A on "Opinions on Accelerating the Innovation and Development of Retail Industry," focused predominantly on offline retail. However, no subsidies or monetary figures were given.
Earlier this week, we complained about Hong Kong's flood of IPOs, ignoring ECON 101's warning that increasing supply without increasing demand leads to lower prices. There was some chatter that the SFC, Hong Kong's regulator, is looking into the IPO process, as Hong Kong's 12 IPOs in the last two days have seen half of the listings fall below their initial prices: today, electronics component maker Luxshare -1.55% after relisting in Hong Kong after raising HK $38.84B.
The IMF lowered global growth by -0.1% to 3%, while raising China's economic growth to +0.2% to 3%.
The Ministry of Industry and Information Technology (MIIT) has stated that Anthropic's Claude Code contains a backdoor that could allow the company to access input data. It did state that once the backdoor is removed, usage is fine.
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | -0.7% |
| Hang Seng Tech | HSTECH Index | 0% |
| Hong Kong Turnover | HKTurn Index | 0.4% |
| Hong Kong Short Sale Turnover | HKSST Index | -2.7% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 18% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | 1254 |
| China (Shanghai) | SHCOMP Index | 1.7% |
| China (Shenzhen) | SZCOMP Index | 2.2% |
| China (STAR Board) | Star50 Index | 8.4% |
| Mainland Turnover | .chturn Index | 13.4% |
| Japan | NKY Index | 1.4% |
| India | SENSEX Index | 0.3% |
| Indonesia | JCI Index | 0.7% |
| Malaysia | FBMKLCI Index | -0.4% |
| Pakistan | KSE100 Index | -0.2% |
| Philippines | PCOMP Index | -0.8% |
| South Korea | KOSPI Index | 0.6% |
| Taiwan | TWSE Index | -0.8% |
| Thailand | SET Index | 2% |
| Singapore | STI Index | 1.2% |
| Australia | AS51 Index | -0.3% |
| Vietnam | VNINDEX Index | -0.0005 |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume % of 1-Year Average | 138 | 120 |
| Advancing Stocks | 122 | 2054 |
| Declining Stocks | 395 | 2963 |
| Outperforming Factors | None | Liquidity, Momentum, Growth |
| Underperforming Factors | Growth, Value, Buyback | Dividend Yield, Low Volatility, Value |
| Top Sectors | Tech, Healthcare | Tech, Healthcare, Industrials |
| Bottom Sectors | Real Estate, Materials, Communication | Staples, Materials, Discretionary |
| Top Subsectors | Semis, Tech Hardware, Electrical Equipment | Semis, Communication Equipment, Computer Hardware |
| Bottom Subsectors | Auto, Household/Personal Products, Consumer Services | Catering/Tourism, Steel, Coal |
| Southbound Connect Buys | Knowledge Atlas (Massive), Alibaba (Very Large), Hua Hong Semi, SMIC (Large), Xiaomi (Moderate), Gigadevice, KB Laminates, YOFC (Small) | |
| Southbound Connect Sells | HK Tracker ETF (Very Large), Tencent (Large) |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 165 | -1.15 |
| Communication Services | 11 | -1.86 |
| Consumer Discretionary | 28 | -1.12 |
| Consumer Staples | 13 | -1.66 |
| Energy | 6 | -0.81 |
| Financials | 25 | -1.82 |
| Health Care | 16 | 0.32 |
| Industrials | 22 | -0.28 |
| Information Technology | 12 | 2.1 |
| Materials | 14 | -1.99 |
| Real Estate | 7 | -2.1 |
| Utilities | 11 | -0.67 |
| Mainland China Listed | 386 | 2.59 |
| Communication Services | 8 | 0.74 |
| Consumer Discretionary | 26 | -0.24 |
| Consumer Staples | 19 | -1.26 |
| Energy | 12 | 0.48 |
| Financials | 64 | 0.23 |
| Health Care | 31 | 2.01 |
| Industrials | 58 | 0.93 |
| Information Technology | 95 | 7.09 |
| Materials | 52 | -0.53 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | -1.9 |
| Alibaba HK | 9988 HK Equity | 0.5 |
| JD.com HK | 9618 HK Equity | -0.6 |
| NetEase HK | 9999 HK Equity | -0.6 |
| Yum China HK | 9987 HK Equity | -2.2 |
| Baozun HK | 9991 HK Equity | -0.1 |
| Baidu HK | 9888 HK Equity | -2.7 |
| Autohome HK | 2518 HK Equity | 7.3 |
| Bilibili HK | 9626 HK Equity | -4.2 |
| Trip.com HK | 9961 HK Equity | -1.8 |
| EDU HK | 9901 HK Equity | -1 |
| Xpeng HK | 9868 HK Equity | -2.5 |
| Weibo HK | 9898 HK Equity | -0.6 |
| Li Auto HK | 2015 HK Equity | -3.6 |
| Nio Auto HK | 9866 HK Equity | -4 |
| Zhihu HK | 2390 HK Equity | 0.6 |
| KE HK | 2423 HK Equity | -1.4 |
| Tencent Music Entertainment HK | 1698 HK Equity | -1.3 |
| Meituan HK | 3690 HK Equity | -3 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| ALIBABA GROUP HOLDING LTD | 0.5 |
| TENCENT HOLDINGS LTD | -1.9 |
| KNOWLEDGE ATLAS TECHNOLOGY-H | 8.6 |
| SEMICONDUCTOR MANUFACTURI-H | 8.9 |
| HUA HONG GRACE SEMICONDUCTOR | 8 |
| XIAOMI CORP-CLASS B | -2.6 |
| YANGTZE OPTICAL FIBRE AND-H | 3.8 |
| KINGBOARD LAMINATES HLDG LTD | 1.9 |
| MINIMAX GROUP INC | -18 |
| GIGADEVICE SEMICONDUCTOR I-H | 21.7 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| ZHONGJI INNOLIGHT CO LTD-A | 2.7 |
| GIGADEVICE SEMICONDUCTO-CL A | 8.5 |
| BOE TECHNOLOGY GROUP CO LT-A | 3.8 |
| SUZHOU DONGSHAN PRECISION-A | 4.8 |
| EOPTOLINK TECHNOLOGY INC L-A | 4.9 |
| CAMBRICON TECHNOLOGIES-A | 7.9 |
| SEMICONDUCTOR MANUFACTURIN-A | 9.1 |
| MONTAGE TECHNOLOGY CO LTD-A | 15.6 |
| ZTE CORP-A | 9.4 |
| JCET GROUP CO LTD-A | 10 |
Last Night's Exchange Rates, Prices, & Yields
- CNY per USD 6.79 versus 6.79 yesterday
- CNY per EUR 7.76 versus 7.76 yesterday
- Yield on 10-Year Government Bond 1.74% versus 1.74% yesterday
- Yield on 10-Year China Development Bank Bond 1.82% versus 1.82% yesterday
- Copper Price -0.68%
- Steel Price +0.03%
