A focused report: Cxmt Corporation's debut sent shares soaring, with a market capitalization exceeding two Moutais, and each winning bid earning 20,000 yuan.

Today, the highly anticipated Cxmt Corporation finally made its market debut. The outcome was as expected: upon listing, its share price surged over 400%, ultimately closing at 49 yuan per share with a staggering 465.82% gain, bringing its total market value to 3.28 trillion yuan. To put this into perspective, the previous A-share market cap leader, Industrial and Commercial Bank of China, had a total market value of just 2.76 trillion yuan at today's close. In short, Cxmt Corporation emerged immediately as the unrivalled king of the A-share market.

During trading, its share price even spiked over 500% at one point, and at the midday close, its total market cap reached an astonishing 3.66 trillion yuan. At the same moment, this achievement even surpassed Chinese internet giant Tencent, securing a small victory. The success rate for winning bids in Cxmt Corporation's IPO was also notably high, reaching 0.4%, a significant increase in probability compared to the usual 0.01% or 0.04% for new stocks. As a result, this was virtually a nationwide celebration for stock market participants. For instance, one lucky investor, with less than 5,000 yuan, won a bid and made a tidy profit of 20,000 yuan, getting a small taste of the gains.

As many voices had predicted, the listing of Cxmt Corporation represents the rise of a large group of tech elites behind it, with countless individuals achieving financial freedom overnight. For example, the company's founder and chairman, Zhu Yiming, along with nine other directors and senior executives, collectively hold over 2 billion shares. Based on the closing price, their holdings are worth nearly 100 billion yuan, with Zhu Yiming and director and president Cao Kanyu holding shares valued at approximately 77.9 billion yuan and over 10 billion yuan, respectively. Several other executives also have shareholdings worth over 1 billion yuan. Furthermore, according to its employee stock ownership plan, it will also create a wave of new wealth en masse. Calculations suggest that, based on today's opening price, at least several hundred millionaires will be created among its employees.

Where the opportunity was lost

But there is joy and sorrow. Country Garden, as one of the earliest companies to invest in Cxmt Corporation, likely deeply regrets its decision. It was supposed to be one of the companies reaping the biggest rewards from this feast. As early as 2021, when domestic memory chips had not yet risen and Cxmt Corporation's valuation was only 40 billion yuan, Country Garden's venture capital arm precisely participated in Cxmt Corporation's Series C funding round. With considerable foresight, it invested 900 million yuan to acquire a 1.56% stake.

However, it is well known that Country Garden has had a very difficult time recently. This 900 million yuan investment, which had planted the seeds for a potential turnaround, unfortunately did not stay in Country Garden's portfolio. In December 2024, Country Garden, facing financial pressures and the need to deliver housing projects, ultimately chose to transfer this stake for a total price of 2 billion yuan. Over three years, turning 900 million into 2 billion was considered a decent investment return at the time and a much-needed lifeline for Country Garden. But if measured against today's value: based on Cxmt Corporation's closing total market cap of 3.28 trillion yuan, that 900 million yuan investment could have turned into nearly 51.2 billion yuan, resulting in a net profit of over 50 billion yuan.

To put this in perspective, Country Garden's current total market value is only around 82 billion Hong Kong dollars, or just over 70 billion yuan. In other words, if Country Garden had held onto that 1.56% stake through the pressure, the profit alone would be enough to buy seven Country Gardens. It's a pity that this former real estate giant couldn't hold out until this day.

The big winners emerge

In this grand celebration for Cxmt Corporation, Hefei State-owned Assets, the largest shareholder holding over 33%, became the biggest winner. On the first day of trading, the unrealized profit from its shareholding had already exceeded 1 trillion yuan. Behind this envy-inducing achievement is a decade-long journey of collaboration between Hefei State-owned Assets and Cxmt Corporation. The blueprint for Cxmt Corporation began in 2016. From that year, Hefei State-owned Assets, with remarkable determination, began its steadfast investment in Cxmt Corporation, investing 80% of the capital in the first round, which was equivalent to 22% of Hefei's annual fiscal revenue at the time.

Over the past decade, the cash-burning Cxmt Corporation did not have a smooth development path. It once faced massive losses, accumulating a total deficit of 40.8 billion yuan by June of last year. It was in this situation that Hefei State-owned Assets continuously injected capital, providing firm backing. Even the stake Country Garden exited at the end of 2024 was taken over by Hefei State-owned Assets. And now, everyone sees the results: from turning profitable at the end of last year, to projecting a profit of 50 billion to 57 billion yuan for the first half of this year, to now making a powerful entrance into the capital market as the new king of A-shares. As the "big tree" supporting the company, Hefei State-owned Assets saw its decade-long investment finally yield the most substantial returns.

A shift in the industrial landscape

The decade of persistence has not only changed Hefei's financial foundation but also the entire industrial momentum of memory chip manufacturing in Hefei and even China. Cxmt Corporation has brought together over 400 upstream and downstream companies in the memory sector in Hefei, giving China a globally competitive leader. Today, there are four major DRAM memory giants globally, and Cxmt Corporation is one of them. The other three are South Korea's Samsung Electronics, SK Hynix, and America's Micron Technology. This achievement is hard-won and has brought unprecedented global attention to Hefei.

In contrast to the disappointed Country Garden, savvy real estate developers in Hefei have already started to capitalise on this wave of immense popularity. For example, Hefei's luxury property developer, Weixing T10, has rolled out an advertisement declaring: "There is no second Hefei in the world." Using this opportunity, they are pushing Hefei onto the throne of a "hot land for top-tier asset allocation." In their public statements, Weixing has also quietly added a tagline: "China's Top Luxury, Hefei's Answer." Whether the newly wealthy will buy into this is unknown, but the wave is being ridden clearly and cleverly. After all, this newly created class of wealthy individuals in Hefei might also need a more top-tier place to call home. The trend of luxury real estate, which blew from Shanghai to Shenzhen and then to Hangzhou, now seems to be blowing towards Hefei as well.

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