ChangXin Memory Technologies (CXMT), China's largest memory chipmaker, is being priced by crypto traders at nearly half a trillion dollars in valuation just days before its highly anticipated debut on the Shanghai stock exchange. Offshore investors, unable to participate directly in the IPO due to restrictions, have turned to decentralized derivatives platforms such as Hyperliquid, where a CXMT-linked perpetual futures contract traded near $6.35 per share on Thursday, after peaking at $8.60 recently. This pricing implies a market capitalization of approximately $425 billion, or about 2.9 trillion yuan, surpassing Industrial and Commercial Bank of China, which is currently the mainland's largest listed company at roughly 2.56 trillion yuan [1].
The official offer price for CXMT's IPO was set at 8.66 yuan ($1.28) per share, giving the company a valuation of 579 billion yuan at listing. This would still make it the largest IPO in the tech-focused STAR market's history [1]. The outsized premium observed in the crypto derivatives market is attributed to the scarcity of access for global investors, as the Shanghai debut is closed to foreigners and even mainland retail investors face significant barriers, including a 500,000 yuan account balance and two years of trading experience required for STAR market participation [1].
Analysts note that the premium in the crypto market reflects both the limited access and strong conviction in CXMT's underlying business. Eric Chen, CEO of Injective Labs, commented that such a market is not valuing the company per se, but forecasting where the stock price might open. He added that, given the typical pricing of Chinese IPOs and the thin initial float, a strong debut is expected, but with most global investors unable to access the shares and few venues to short the stock, the price reflects the most optimistic participants [1].
The use of perpetual futures contracts on platforms like Hyperliquid allows traders to speculate on CXMT's valuation without holding the underlying asset, creating a parallel market for exposure to the chipmaker ahead of its official listing [1].
CONCLUSION
ChangXin Memory Technologies' IPO is generating unprecedented interest, with crypto traders valuing the company far above its official listing price due to restricted access and high investor conviction. The Shanghai debut is expected to be strong, but the parallel crypto market highlights the demand from global investors unable to participate directly. This event underscores both the scarcity premium and the optimism surrounding China's largest memory chipmaker.