Banks 'Lurk' Behind ChangXin Memory Technologies: Equity Appreciation Accounts for 0.3%-10% of 2025 Revenue for 6 Major Banks Including ICBC, ABC, CCB, etc.

Odaily Planet Daily News On its listing day, ChangXin Memory Technologies (CXMT) ascended to the throne as the king of A-shares, also bringing substantial book-value appreciation gains for the five major state-owned banks that indirectly hold stakes. It is reported that the five major state-owned banks primarily participated in the investment in CXMT through their financial asset investment companies (AICs): Agricultural Bank of China holds a direct stake of approximately 0.95% through its subsidiary ABC Financial Asset Investment Co., making it the largest investor among the bank-affiliated AICs; China Construction Bank holds a direct stake of about 0.83% through CCB Principal Asset Management, while also indirectly holding some shares through CCB International and CCB Principal Linghang, bringing the total combined stake to approximately 1.7% after looking through the structure, the highest ratio among the five state-owned banks; Industrial and Commercial Bank of China holds about 0.64% through ICBC Financial Asset Investment's subsidiary ICBC Rongjin Investment; Bank of Communications holds about 0.38% through BOCOM Financial; and Bank of China holds about 0.38% through BOC Asset Management.

Analysis suggests that banks will most likely place their CXMT equity holdings under FVTPL accounts (financial assets measured at fair value through profit or loss). Assuming the last pre-IPO funding round price of 2.63 yuan per share as the benchmark, the book values for each bank are: CCB 24.6 billion yuan, ABC 15 billion yuan, ICBC 10.1 billion yuan, BOC and BCM each 6 billion yuan, and CMBC 4.6 billion yuan. Under different scenarios simulating CXMT's total market capitalization ranging from 1 to 7 trillion yuan after listing, the equity appreciation portion would account for approximately 0.3% to 10% of the 2025 revenue of these six banks. (Caixin)