Banks "Lurk" in ChangXin Memory Technologies: Equity Appreciation Could Account for 0.3%-10% of 2025 Revenue for Six Major Banks Including ABC, ICBC, and CCB

Odaily News On its first day of listing, ChangXin Memory Technologies (CXMT) ascended to become the "king of stocks" on the A-share market, also bringing substantial book value appreciation gains for the five major state-owned banks that indirectly hold stakes. It is understood that these five major state-owned banks primarily participated in the investment in CXMT through their financial asset investment companies (AICs): Agricultural Bank of China, via its subsidiary ABC Financial Asset Investment, directly holds approximately 0.95%, making it the largest investor among the banking AICs; China Construction Bank, through CCB Principal Asset Management, directly holds about 0.83%, and also indirectly holds some equity via CCB International and CCB Principal Leading, accumulating to a total stake of around 1.7% after unpeeling, the highest proportion among the five state-owned banks; Industrial and Commercial Bank of China holds roughly 0.64% through ICBC Financial Asset Investment's ICBC Rongjin Investment; Bank of Communications holds about 0.38% via BOCOM Financial; Bank of China holds approximately 0.38% through BOC Asset Management.

Analysts suggest that the banks will most likely place their CXMT equity under the FVTPL account (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 amounts for each bank are as follows: CCB 24.6 billion yuan, ABC 15 billion yuan, ICBC 10.1 billion yuan, BOC and BOCOM 6 billion yuan each, and CMB 4.6 billion yuan. Under different scenarios simulating CXMT's total market capitalization of 1-7 trillion yuan post-IPO, the equity appreciation portion is estimated to account for 0.3%-10% of the 2025 revenue for these six banks. (Caixin)