Changxin Technology Surges 465.8% on STAR Debut, Market Value Tops A-Shares at RMB3.27 Trillion
Changxin Technology, a domestic memory chip maker, closed at RMB49 per share on its first trading day on the Shanghai STAR Market on July 27, a 465.8% jump from its IPO price of RMB8.66. The surge lifted its market capitalization to RMB3.27 trillion, surpassing Industrial and Commercial Bank of China to become the most valuable A-share company. Turnover reached over RMB140 billion with a turnover rate of 66.4%. All IPO investors booked paper gains, with strategic investors and institutional funds reaping billions.
On July 27, Changxin Technology, a domestic memory chip manufacturer, officially listed on the Shanghai STAR Market. The stock opened at RMB49.5, corresponding to a market value of about RMB3.3 trillion. During the session, the price briefly surged past RMB55, lifting the total market capitalization to RMB3.66 trillion. At the close, Changxin Technology ended at RMB49 per share, a gain of 465.8% from the IPO price of RMB8.66 per share, giving a first-day market cap of RMB3.27 trillion. Full-day turnover exceeded RMB140 billion, with a turnover rate of 66.4%. This market value surpasses Industrial and Commercial Bank of China and others, making it the largest A-share company by market cap.
All investor types that took part in the IPO booked gains on the first day. Based on the standard STAR Market lot of 500 shares and the IPO price of RMB8.66, and using the closing price of RMB49, one lot yielded a profit of RMB20,170. One retail investor who received allocations across multiple accounts—one with 2,000 shares, another with 4,000 shares, and a third with 500 shares—sold the 2000-share lot at near RMB49 after the shares spiked, earning roughly RMB80,000.
As IPO sponsors, CICC and CITIC Securities each participated in the strategic placement through wholly-owned subsidiaries, receiving allocations of about 115 million shares each for approximately RMB1 billion. At the July 27 close, those holdings were each worth RMB5.635 billion, delivering paper gains of about RMB4.639 billion apiece. Among public mutual funds, 100 fund management companies with 5,507 products were allotted a combined 1.251 billion shares worth RMB10.829 billion. E Fund Management, China Southern Asset Management, and ICBC Credit Suisse Asset Management each received allotments exceeding RMB1 billion. For instance, E Fund obtained about 169 million shares, which at the closing price generated a first-day paper gain of roughly RMB6.8 billion.
In the quantitative private fund space, 112 managers with 2,458 products were allocated a combined 161 million shares worth RMB1.397 billion. Four firms received more than RMB100 million apiece: Jiukun Investment got about 15.3996 million shares, for a paper gain of about RMB621 million; Ningbo Huanfang Quant received about 15.3542 million shares, gaining about RMB619 million; Yanfu Investment was allocated about 15.3512 million shares, with a gain of about RMB619 million; and Century Frontier received about 15.0033 million shares, for a gain of about RMB605 million. Additionally, Jiuzhang Asset, another quantitative private fund controlled by Liang Wenfeng, was allotted 4.89547 million shares, delivering a paper gain of about RMB197 million. Huanfang and Jiuzhang participated as two independent entities in the placement; together their paper gains exceeded RMB820 million.