China's largest memory chipmaker, ChangXin Memory Technologies (CXMT), is attracting extraordinary investor interest ahead of its Shanghai Stock Exchange debut, with crypto-based derivatives markets valuing the company at around $425 billion, a figure that would make it the most valuable listed company in mainland China.
The valuation has emerged days before CXMT's scheduled listing on the STAR Market, where the company is expected to complete one of Asia's largest initial public offerings (IPOs) this year.
On decentralized trading platform Hyperliquid, a perpetual futures contract linked to CXMT traded at about $6.35 per share, after recently reaching a high of $8.60. At current prices, the implied market capitalization stands at nearly 2.9 trillion yuan ($425 billion).
If reflected in public markets, that valuation would exceed Industrial and Commercial Bank of China (ICBC), currently the country's largest listed company with a market value of approximately 2.56 trillion yuan.
However, CXMT's official IPO tells a different story. The company has priced its shares at 8.66 yuan ($1.28) each, giving it a listing valuation of roughly 579 billion yuan, which is already expected to make it the largest IPO in the history of Shanghai's STAR Market.
Industry analysts say the sharp difference between the official valuation and crypto market pricing reflects limited investor access rather than the company's underlying fundamentals.
The Shanghai listing remains largely inaccessible to overseas investors, while mainland retail investors must meet strict eligibility requirements, including maintaining at least 500,000 yuan in their trading accounts and having two years of market experience. As a result, many international investors have turned to crypto-based derivatives to gain indirect exposure before the IPO.
Eric Chen, co-founder and Chief Executive Officer of Web3 finance company Injective Labs, said the crypto market is acting more as a measure of investor enthusiasm than a precise indicator of fair value.
According to Chen, pre-IPO derivative markets often reflect expectations about how shares could trade after listing rather than the company's intrinsic worth. He noted that the limited availability of the stock and the absence of effective short-selling opportunities have contributed to the elevated pricing.
CXMT is expected to raise as much as $8.6 billion through its IPO, making it Asia's largest public offering of the year. The listing comes at a time when global demand for memory chips continues to rise, driven by rapid growth in artificial intelligence applications and ongoing supply constraints across the semiconductor industry.
The growing use of crypto platforms to trade synthetic versions of private or restricted companies has also attracted regulatory attention.
Singapore's Monetary Authority of Singapore (MAS) recently placed Hyperliquid on its Investor Alert List, stating that the platform is not licensed or regulated in the country. Hyperliquid has said the listing does not represent an enforcement action and maintains that it has never claimed to be regulated by MAS.
Market participants expect the valuation gap between the crypto contract and the listed shares to narrow once CXMT begins trading next week. Analysts say the adjustment could be swift, depending on investor demand when the stock officially opens on the Shanghai exchange.
The IPO is being closely watched by global investors as a key milestone for China's semiconductor industry and its efforts to strengthen domestic chip manufacturing amid rising international competition.
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