ChangXin Memory Technologies (CXMT) will list on the Shanghai STAR Market on July 27, having raised $8.6 billion in Asia’s largest IPO so far this year. Analysts at HashKey Group estimate the company’s valuation will rapidly exceed 1 trillion yuan ($139 billion) after listing, making it a major player on the STAR Market and in semiconductor indices. This outlook is prompting investors to reposition ahead of the listing, pressuring sectors that had previously led the rally, including memory chips and semiconductor equipment. The STAR 50 Index has declined nearly 20% this quarter, although analysts note that the IPO is acting as an amplifying factor rather than the root cause of the pullback, which is primarily tied to elevated positioning and high leverage levels in China’s tech sector.
Source: Read the original article
