CXMT Launches $4B IPO as Top Fund Managers Signal Confidence

ChangXin Memory Technology (CXMT), China’s leading DRAM manufacturer, officially launched its IPO subscription on the Shanghai Stock Exchange’s STAR Market on July 16, drawing strong interest from prominent institutional investors including well-known fund managers Zhang Kun, Ge Lan, Fu Pengbo, and Liu Gege. The IPO, priced at 8.66 yuan per share, values the company at approximately 579.2 billion yuan ($79.5 billion) and aims to raise 29.5 billion yuan ($4.05 billion), making it the largest A-share IPO of 2026, according to The Paper.

IPO Details and Subscription Schedule

The subscription process opened on July 16 with both online and offline channels. Retail investors can subscribe via the online subscription code 787825, while institutional investors use the stock code 688825. The offering is underwritten by China International Capital Corporation (CICC).

CXMT’s IPO is the second-largest in STAR Market history, trailing only SMIC’s 53.2 billion yuan fundraising. The company is offering 6.688 billion shares, with the option to increase by up to 15% through a greenshoe mechanism, bringing the total to 7.691 billion shares.

Institutional Demand Surges

The preliminary inquiry phase saw exceptional participation from China’s mutual fund industry. A total of 93 mutual fund companies submitted valid quotations, managing 5,419 placement targets with a combined proposed subscription volume of 679.8 billion shares. Mutual funds accounted for approximately 54.9% of all valid proposed subscription volume, underscoring the market’s enthusiasm for the offering.

Leading the charge was E Fund Management, which submitted 91.97 billion shares in proposed subscriptions across 586 placement targets. Southern Fund followed with 75.67 billion shares across 531 targets, while ICBC Credit Suisse submitted 63.7 billion shares across 451 targets. Other major participants included Fullgoal Fund, China Asset Management, and GTJA Allianz, each submitting over 40 billion shares.

Notable Fund Manager Participation

Several of China’s most prominent fund managers have their products listed among the preliminary inquiry participants. Zhang Kun’s E Fund Blue Chip Selection, E Fund High-Quality Enterprise Three-Year Hold, and E Fund High-Quality Selection all participated. Liu Gege’s GF Innovation Upgrade and GF Technology Pioneer, Ge Lan’s China-Europe Medical Health and China-Europe Medical Innovation, and Fu Pengbo and Zhu Lin’s Ruiyuan Growth Value were also among the funds that submitted bids.

Financial Performance and Business Overview

CXMT’s financial performance has accelerated dramatically amid the global DRAM super-cycle driven by AI demand. In the first quarter of 2026, the company reported revenue of 50.8 billion yuan, a 719% year-over-year increase, while net profit attributable to the parent company surged 1,688% to 24.76 billion yuan. For the first half of 2026, CXMT expects revenue between 110 billion and 120 billion yuan, with net profit attributable to the parent company ranging from 50 billion to 57 billion yuan.

The company has achieved mass production of its full DDR4, DDR5, LPDDR4X, and LPDDR5/5X DRAM product lines, with core product technology reaching internationally advanced levels. CXMT’s products serve the server, mobile device, and smart vehicle markets.

Strategic Significance

CXMT’s IPO represents a milestone for China’s semiconductor self-sufficiency ambitions. As the country’s first and only domestically developed DRAM manufacturer at scale, CXMT has grown from its founding in 2016 to become the world’s fourth-largest DRAM maker by sales, holding approximately 7.67% of the global market as of the fourth quarter of 2025.

The company’s journey has been supported by Hefei’s “patient state capital” model, with the local government providing approximately 80% of initial funding. State-owned entities, including Hefei, Anhui province, and the National Big Fund Phase II, collectively hold over 30% of shares post-IPO.

Market Implications

The strong institutional demand for CXMT’s IPO signals confidence in China’s semiconductor narrative, even as the company faces challenges including a technology gap in high-bandwidth memory (HBM) production and vulnerability to US export controls on advanced equipment. CXMT’s HBM production remains nascent, with only about 5,000 wafers per month allocated compared to its total capacity of approximately 265,000 wafers per month.

South Korean media outlet Chosun Ilbo has noted that if CXMT can narrow the gap with industry leaders in high-value products like HBM, the market structure long dominated by South Korea and the US could face significant disruption.

What to Watch

As CXMT begins trading, market observers will be watching the company’s ability to navigate the HBM technology gap, manage its complex shareholder structure where the company reports no controlling shareholder despite significant state influence, and sustain its growth trajectory through the inherently cyclical DRAM market. The IPO’s performance will also serve as a barometer for investor appetite for China’s semiconductor sector amid ongoing geopolitical tensions.