Banks "Lurk" in ChangXin Memory Technologies: Equity Appreciation Accounts for 0.3%-10% of the 2025 Revenue of Six Major Banks, Including the "Big Four"

Odaily reported that ChangXin Memory Technologies (CXMT) claimed the title of "king of stocks" on its first day of listing on the A-share market, also bringing substantial book-value gains to the five major state-owned banks that indirectly hold shares in the company. It is understood that the five major state-owned banks primarily participated in CXMT's investment through their financial asset investment companies (AICs): Agricultural Bank of China directly holds approximately 0.95% via its subsidiary, ABC Financial Asset Investment, making it the largest investor among the banking AICs; China Construction Bank directly holds about 0.83% through CCB Financial Asset Investment, while also holding additional shares indirectly through CCB International and CCB Leading, bringing its total stake to approximately 1.7% after look-through consolidation, the highest proportion among the five state-owned banks; Industrial and Commercial Bank of China holds approximately 0.64% through ICBC Financial Asset Investment's ICBC Rongjin Investment; Bank of Communications holds about 0.38% through BOCOM Financial; and Bank of China holds approximately 0.38% through BOC Asset.

Analysis suggests that banks are likely to place their CXMT equity holdings under FVTPL accounts (financial assets measured at fair value through profit or loss). Assuming the last pre-IPO capital increase price of RMB 2.63 per share as the benchmark, the book values for each bank are approximately RMB 2.46 billion for CCB, RMB 1.5 billion for ABC, RMB 1.01 billion for ICBC, RMB 600 million each for BOC and BOCOM, and RMB 460 million for China Merchants Bank. Under different scenarios simulating CXMT's total market capitalization ranging from RMB 1 trillion to 7 trillion after listing, the equity appreciation portion accounts for approximately 0.3% to 10% of the six banks' 2025 revenues. (Caixin)