Banks "Lurk" in CXMT: Equity Appreciation Accounts for Approximately 0.3%-10% of Six Major Banks' 2025 Revenue, Including ICBC, ABC, CCB, etc.
Odaily reported that CXMT (Changxin Memory Technologies) became the "king" of A-shares on its debut, also bringing considerable book value appreciation gains for the five major state-owned banks that indirectly hold stakes. It is understood 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 (ABC) directly holds approximately 0.95% through its subsidiary, ABC Financial Asset Investment Co., Ltd., making it the largest investor among the banking AICs; China Construction Bank (CCB) directly holds approximately 0.83% through CCB Principal Asset Management Co., Ltd., while also indirectly holding some shares via CCB International, CCB Financial Leasing, resulting in a combined holding of approximately 1.7% after look-through, the highest proportion among the five state-owned banks; Industrial and Commercial Bank of China (ICBC) holds approximately 0.64% through ICBC Financial Asset Investment Co., Ltd. and its subsidiary ICBC Financial Capital; Bank of Communications (BoCom) holds approximately 0.38% through BoCom Financial Asset Investment Co., Ltd.; Bank of China (BOC) holds approximately 0.38% through BOC Financial Asset Investment Co., Ltd.
Analysis indicates that banks are likely to place their CXMT equity holdings under the FVTPL account (Financial assets 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 value for each bank would be 24.6 billion yuan for CCB, 15 billion yuan for ABC, 10.1 billion yuan for ICBC, and 6 billion yuan each for BOC and BoCom, and 4.6 billion yuan for China Merchants Bank. Under different scenarios where CXMT's total market capitalization ranges from 1 trillion to 7 trillion yuan post-listing, the equity appreciation portion would account for approximately 0.3% to 10% of the six banks' 2025 revenue. (Caixin)
