Xiaomi Chairman's Investment in Changxin Technology Reportedly Yields Significant Gains
Chinese DRAM chip maker Changxin Technology's listing on the Shanghai Stock Exchange has drawn attention. Reports suggest an investment linked to Xiaomi's chairman, Lei Jun, generated substantial profits on the first trading day.
Changxin Technology (CXMT), a leading Chinese domestic DRAM chip manufacturer, officially listed on the Shanghai Stock Exchange's STAR Market on July 27. The stock surged 465.82% on its debut, pushing the company's total market capitalization past 3.28 trillion yuan (approximately $45 billion USD).
Reports from Chinese media indicate that an investment by Wuhan Yibaiyiling Enterprise Management Co., Ltd., a wholly-owned subsidiary of Xiaomi, in Changxin Technology's strategic placement resulted in a substantial first-day gain. The subsidiary was allocated 18.2448 million shares at an issue price of 8.66 yuan per share. These shares reportedly yielded a profit of 736 million yuan (approximately $101 million USD) on the listing day. The reports further suggest that Lei Jun, Xiaomi's chairman and majority shareholder, indirectly benefited from this through his stake in Xiaomi, with an estimated unrealized gain of 717 million yuan.
Changxin Technology's listing on the STAR Market saw its shares open at 49.5 yuan, a 471.59% increase from the offering price of 8.66 yuan. The company's market capitalization reached 3.31 trillion yuan during intraday trading.
Xiaomi Group's Chairman Special Assistant, Xu Jieyun, addressed the reports on July 28 via social media. She advised the public to view the information as entertainment and not take it as fact, stating that it was a corporate investment and that subsidiary results cannot be directly equated with personal wealth. She also reiterated congratulations to Changxin Technology.