China's largest memory chipmaker sparks fears of a cash drain before blockbuster IPO

CANADA - 2026/05/23: In this photo illustration, the CXMT (ChangXin Memory Technologies) logo is seen displayed on a smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)Sopa Images | Lightrocket | Getty ImagesChangXin Memory Technologies' massive listing is stoking fears that its market debut could pull cash from Chinese equities, as investors raise funds to get a piece of the country's largest memory chipmaker. The Shanghai STAR Market listing, expected on July 27, has become the latest focus for investors after Chinese technology shares pulled back in recent sessions. CXMT raised $8.6 billion in Asia's largest IPO so far this year. Tim Sun, senior researcher at financial services firm HashKey Group, said the IPO is reinforcing worries over a liquidity squeeze because investors expect CXMT's valuation to rapidly exceed 1 trillion yuan ($139 billion) after listing."Once it passes 1 trillion yuan, CXMT will become a primary heavyweight in the STAR Market and semiconductor indices, forcing index funds, active funds, and sector-specific funds to reallocate toward it," Sun said. Investors are therefore repositioning ahead of time, putting pr...