Country Garden Sold 1.56% CXMT Stake to Hefei State-Owned for RMB 2 Billion, Worth Over RMB 47 Billion After

In December 2024, Country Garden transferred its 1.56% stake in ChangXin Memory Technologies (CXMT) to a platform under Hefei state-owned capital for RMB 2 billion. At that time, the global memory chip market was still near the bottom of the cycle, and CXMT’s IPO process was subject to uncertainty.

On July 27, 2026, CXMT listed on the STAR Market, closing with a market capitalization of RMB 3.28 trillion, making it the most valuable company on the A-share market. The shares held by the Hefei state-owned system were worth over RMB 1 trillion; Alibaba recorded a paper profit of nearly RMB 140 billion. Based on the closing price on the listing day, the stake sold by Country Garden was valued at over RMB 47 billion, a roughly 24-fold increase from the transfer price of RMB 2 billion.

Separately, the company faced a near-term delivery task of almost 380,000 housing units, each involving homebuyer payments, construction costs, and supplier arrears, creating rigid cash outflows. The CXMT equity was viewed at the time as collateral for ensuring delivery, with its financial attributes forcibly converted into a liquidity tool.

The transfer price was RMB 2.22 per share, about one-fourth of the issue price and 4.5% of the opening price. The pricing incorporated multiple risk discount factors, including global memory cycle fluctuations, geopolitical impacts on supply chains, and IPO approval uncertainty. The acquirer was Hefei state-owned capital, and the transaction ensured RMB 2 billion in cash was received immediately, bypassing the IPO lock-up period, and was directly used for housing delivery projects.

The takeover by Hefei state-owned capital provided Country Garden with an implicit credit endorsement, aiding its debt restructuring negotiations with hundreds of domestic and foreign creditors. At the macro level, the transaction completed a transfer of risk from the private sector to the public sector, with Country Garden obtaining liquidity and fulfilling its delivery obligations, while Hefei state-owned capital and industrial capital such as Alibaba assumed the long-term development dividends of the memory chip industry.