For investors, the debut resets the benchmark for what the market is willing to pay for a strategic Chinese chip firm. The shares dipped to 38.11 yuan momentarily before recovering sharply and were trading at 49.51 yuan by mid-morning Singapore time. The first-day rally easily outstripped the more-than-doubling recorded by China Resources New Energy after its $3.6 billion IPO earlier in July.
The question now is whether a valuation that surged nearly 470% in a single session can be sustained if AI-driven memory demand softens or if DRAM prices retreat. With only a sliver of shares freely trading, the same mechanics that propelled the stock upward could also accelerate any reversal. Can CXMT's earnings trajectory keep pace with a market capitalisation that already exceeds that of every other company listed in China?
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