Key facts
- China's manufacturing PMI fell to 49.2 in July, indicating contraction.
- Construction activity reached its lowest point since the pandemic.
- CXMT shares surged over 500% in their Shanghai debut, reaching a market value of 3.65 trillion yuan.
- CXMT is China's leading producer of DRAM chips and the world's fourth-largest DRAM maker.
- The company's IPO raised 57.92 billion yuan, making it Asia's largest IPO this year.
China's factory activity unexpectedly contracted in July for the first time in five months, with the official manufacturing purchasing managers' index (PMI) dropping to 49.2, missing economists' median estimate of 50.1. Construction and services activity also declined, with the non-manufacturing PMI falling to 49 from 50.2 in June. This economic slowdown complicates efforts to revive growth.
In contrast, ChangXin Memory Technologies (CXMT), a leading domestic producer of dynamic random-access memory (DRAM) chips, saw its shares surge over 500% on their Shanghai debut. The company raised 57.92 billion yuan (US$8.6 billion) in Asia's largest initial public offering this year, catapulting its market value to approximately 3.65 trillion yuan and making it China's most valuable listed company, surpassing Industrial and Commercial Bank of China.
CXMT's strong performance underscores investor appetite for Chinese semiconductor companies, particularly those aligned with Beijing's push for technological self-reliance. The company is crucial for China's AI ambitions, especially given US export controls on advanced semiconductors and manufacturing equipment. CXMT is the world's fourth-largest DRAM maker, holding a 7.7% market share in 2025, and its growth has been fueled by a global memory-chip upcycle driven by AI demand. Its first-quarter revenue jumped 719% year-on-year.