CXMT Rockets to Become The Largest Mainland-Listed Company
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Key News
Asian equities had a strong day on light volumes as Middle East tensions paused, again. Both Hong Kong and Mainland China had a strong day, except for oil & gas, as Mainland China saw incredible breadth, though volumes were light.
The world’s fourth-largest dynamic random access memory (DRAM) chip maker ChangXin Memory Technology (CXMT) went public overnight on the STAR (Science & Technology) Board. The IPO was a rocket ship to the stars, rising +465% over the session to close at RMB 49 above its IPO price of RMB 8.66. While below my target of +500%, CXMT, which trades under the ticker 688825, is now the most valuable company listed in Mainland China, with a market cap of $484 billion. The IPO is a remarkable feat from a company that was founded in 2016. Its revenue for the first six months of 2026 will increase to between RMB 110 billion and RMB 120 billion, representing a year-over-year (YoY) increase somwehere between 612% and 677%. The revenue growth, which was RMB 9 billion in 2023, RMB 24 billion in 2024 and RMB 61 billion in 2025, is expected to reach RMB 303 billion in 2026 and RMB 517 billion in 2027. The stock had 2,990,129,163 shares traded, worth RMB 141 billion ($20 billion), which is 5X the second-most heavily traded stock in Mainland China by value overnight. The Financial Times gave CXMT’s IPO a front page story, though it was a little harder to find coverage in the Wall Street Journal.
CXMT is headquartered in the city of Hefei, which is in Anhui Province. The city should see real estate pop as 6,750 employees, which is 35% of the company's workforce, owns shares. Congratulations!
I am shocked that Alibaba, which gained +0.91%, was not up more overnight, considering that it owns nearly 5% of CXMT after having invested in the company in December of 2021 and again in June of 2025. The company’s RMB 7.6 billion initial stake is now worth 22 times more, at RMB 17 billion. Alibaba’s ownership is likely about locking in DRAM chip supply. Hat tip to management, though I wish other investors would recognize management’s acumen. Alibaba is also spinning off their T-Head chip unit, which should be positively effected by the valuation comparison. I would also say the same for Baidu, which was flat overnight, and is going to spin off their Kunluxon chip unit.
Xiaomi gained +7.34% overnight. The company is also a CXMT investor, though its stake is smaller than Alibaba's. Xiaomi's strong advance overnight came just ahead of the release of sales for the new N90 and N70 SUVs.
Trip.com gained +3.79% after the State Administration of Market Regulation (SARM) fined the company $765 million for monopolistic practices related to hotel bookings. Why did the stock go up? The January-launched investigation’s conclusion is a positive and, although the fine is healthy, it could have been worse. At a of price-to-earnings (P/E) ratio of only 6, you would think value investors would dive in.
Battery giant CATL gained +2.09% in Hong Kong and +4.44% in Mainland China after announcing first-half profit increased +42% to RMB 43 billion and revenue that increased +55% to RMB 276 billion ($40 billiion).
Alibaba saw outflow of $86 million (HKD 675 million) from Mainland investors via Southbound Stock Connect, though Tencent flipped to a buy.
Hong Kong-listed semiconductor stocks were weak, while their onshore, i.e. Mainland-listed, peers were mixed. The "Four Horsemen of the Mainland-listed AI supply chain were strong overnight, led by technology hardware, communication equipment, and semiconductor equipment, though it was an bsurdly broad rally.
The five ETFs favored by China's "National Team", i.e. investment firms associated with sovereign wealth, had below average volumes, though they have seen strong inflows over the past week. The 1,230 domestic equity ETFs listed in Mainland China had $6.34 billion worth of net inflow, as the 1-month net inflow is now $50.82 billion, which reduces the year-to-date (YTD) outflow to -$186 billion, dopwn from around -$250 billion.
June Industrial Profits increased +15.1% YoY versus May’s increase of +21.1%, which brings the first-half Industrial Profits to +18.7%. The increase was led by the electronics sector. which doubled profits YoY. In particular, profits from integrated circuit manufacturing surged +2,579% YoY (not a typo). This is further evidence of China’s role in the global AI supply chain.
I noticed that China’s Treasury curve has really steepened in the last three months. That is usually a positive!
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | 1% |
| Hang Seng Tech | HSTECH Index | 1.6% |
| Hong Kong Turnover | HKTurn Index | 0.3% |
| Hong Kong Short Sale Turnover | HKSST Index | -1.4% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 0.2 |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | -201.07 |
| China (Shanghai) | SHCOMP Index | 1.2% |
| China (Shenzhen) | SZCOMP Index | 2.9% |
| China (STAR Board) | Star50 Index | 1.2% |
| Mainland Turnover | .chturn Index | 0.2% |
| Japan | NKY Index | 0.5% |
| India | SENSEX Index | 1% |
| Indonesia | JCI Index | -0.2% |
| Malaysia | FBMKLCI Index | 0.7% |
| Pakistan | KSE100 Index | 4.2% |
| Philippines | PCOMP Index | 0.5% |
| South Korea | KOSPI Index | 1% |
| Taiwan | TWSE Index | 0% |
| Thailand | SET Index | -1.2% |
| Singapore | STI Index | 0.6% |
| Australia | AS51 Index | 1.4% |
| Vietnam | VNINDEX Index | -0.0005 |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume % of 1-Year Average | 76 | 78 |
| Advancing Stocks | 359 | 4658 |
| Declining Stocks | 145 | 429 |
| Outperforming Factors | Growth, Large Caps, Momentum | Momentum, Growth, Liquidity |
| Underperforming Factors | None | Low Volatility |
| Top Sectors | Information Technology, Communication Services, Consumer Discretionary | Information Technology, Materials, Industrials |
| Bottom Sectors | Energy, Healthcare, Utilities | Utilities |
| Top Subsectors | Tech Hardware, Media & Entertainment, Consumer Services | Building Materials, Daily Chemical, Leisure Products |
| Bottom Subsectors | Petroleum & Petrochemicals, Semiconductors, Coal | Insurance, Oil & Gas, Telecom |
| Southbound Connect Buys | KB Laminates, Z .ai (Moderate), Hua Hong Semiconductor, SMIC, Tencent (Small) | N/A |
| Southbound Connect Sells | Alibaba, CNOOC (Moderate), Xiaomi, YOFC (Small) | N/A |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 165 | 1.2 |
| Communication Services | 11 | 1.75 |
| Consumer Discretionary | 28 | 1.15 |
| Consumer Staples | 13 | 0.74 |
| Energy | 6 | -1.57 |
| Financials | 25 | 1.08 |
| Health Care | 16 | -0.5 |
| Industrials | 22 | 0.96 |
| Information Technology | 12 | 3.69 |
| Materials | 14 | 0.86 |
| Real Estate | 7 | 0.69 |
| Utilities | 11 | -0.4 |
| Mainland China Listed | 386 | 1.47 |
| Communication Services | 8 | 2.04 |
| Consumer Discretionary | 26 | 0.95 |
| Consumer Staples | 19 | 0.06 |
| Energy | 12 | 0.59 |
| Financials | 64 | 0.18 |
| Health Care | 31 | 1.23 |
| Industrials | 58 | 2.12 |
| Information Technology | 95 | 2.39 |
| Materials | 52 | 2.25 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | 1.9 |
| Alibaba HK | 9988 HK Equity | 0.9 |
| JD.com HK | 9618 HK Equity | 0.9 |
| NetEase HK | 9999 HK Equity | 1.8 |
| Yum China HK | 9987 HK Equity | 2.8 |
| Baozun HK | 9991 HK Equity | 4.2 |
| Baidu HK | 9888 HK Equity | 0 |
| Autohome HK | 2518 HK Equity | -1.3 |
| Bilibili HK | 9626 HK Equity | 2.4 |
| Trip.com HK | 9961 HK Equity | 3.8 |
| EDU HK | 9901 HK Equity | 0.7 |
| Xpeng HK | 9868 HK Equity | -1.1 |
| Weibo HK | 9898 HK Equity | 0.5 |
| Li Auto HK | 2015 HK Equity | 0.2 |
| Nio Auto HK | 9866 HK Equity | -1.2 |
| Zhihu HK | 2390 HK Equity | 0 |
| KE HK | 2423 HK Equity | 0.7 |
| Tencent Music Entertainment HK | 1698 HK Equity | 3.4 |
| Meituan HK | 3690 HK Equity | 3 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| XIAOMI CORP-CLASS B | 7.3 |
| ALIBABA GROUP HOLDING LTD | 0.9 |
| TENCENT HOLDINGS LTD | 1.9 |
| MEITUAN-CLASS B | 3 |
| Z AI CO LTD | 3.6 |
| SEMICONDUCTOR MANUFACTURI-H | -1 |
| HUA HONG GRACE SEMICONDUCTOR | -0.8 |
| KINGBOARD LAMINATES HLDG LTD | 6.5 |
| CHINA CONSTRUCTION BANK-H | 2.4 |
| CONTEMPORARY AMPEREX TECHN-H | 2.1 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| VISUAL CHINA GROUP CO LTD-A | 3.5 |
| SHANTUI CONSTRUCTION MACHI-A | 1.2 |
| CXMT CORP | 465.8 |
| GIGADEVICE SEMICONDUCTO-CL A | -5 |
| ZHONGJI INNOLIGHT CO LTD-A | 2.9 |
| CONTEMPORARY AMPEREX TECHN-A | 4.4 |
| TONGFU MICROELECTRONIC CO-A | 0 |
| EOPTOLINK TECHNOLOGY INC L-A | 3.1 |
| SUZHOU DONGSHAN PRECISION-A | 6.4 |
| UNISPLENDOUR CORP LTD-A | 0 |
Last Night's Exchange Rates, Prices, & Yields
- CNY per USD 6.77 versus 6/77 Friday
- CNY per EUR 7.70 versus 7.70 Friday
- Yield on 10-Year Government Bond 1.73% versys 1.73% Friday
- Yield on 10-Year China Development Bank Bond 1.79% versus 1.79% Friday
- Copper Price 0.21%
- Steel Price 0.23%
