Banks "Lurk" in CXMT: Equity Appreciation Could Account for 0.3%–10% of 2025 Revenue for Six Major Banks Including ICBC, ABC, CCB, and Others

Odaily reported that on its debut day, CXMT (ChangXin Memory Technologies) became the "king of stocks" on the A-share market, also bringing substantial book-value appreciation gains for the five major state-owned banks that hold indirect stakes in the company. 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) holds a direct stake of approximately 0.95% through its subsidiary ABC Financial Asset Investment Co., making it the largest investor among the banking AICs. China Construction Bank (CCB) holds a direct stake of approximately 0.83% through CCB Principal Asset Management, and also holds additional shares indirectly through CCB International and CCB Principal Leading Fund, bringing the total shareholding after consolidation to approximately 1.7%, the highest proportion among the five state-owned banks. Industrial and Commercial Bank of China (ICBC) holds a stake of approximately 0.64% through ICBC Financial Asset Investment Co.'s subsidiary ICBC Rongjin Investment. Bank of Communications (BoCom) holds a stake of approximately 0.38% through BoCom Financial Leasing. Bank of China (BoC) holds a stake of approximately 0.38% through BOC Asset Management.

Analysis suggests that banks will likely place their CXMT equity holdings under the FVTPL (Fair Value Through Profit or Loss) account. Assuming the last pre-IPO funding round price of 2.63 yuan per share as the base, the respective book values for the banks are CCB: 24.6 billion yuan, ABC: 1.5 billion yuan, ICBC: 1.01 billion yuan, BoC and BoCom: 0.6 billion yuan each, and China Merchants Bank: 0.46 billion yuan. In different scenarios simulating CXMT's total market capitalization ranging from 1 to 7 trillion yuan after listing, the equity appreciation portion is estimated to account for 0.3% to 10% of the six banks' 2025 revenues. (Caixin)