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Crypto Traders Value Chinese Chipmaker CXMT at $425B on Derivatives Platform Pre-IPO
Key points
- CXMT valued at $425 billion on Hyperliquid crypto platform.
- Official IPO valuation for CXMT is 579 billion yuan ($86 billion).
- Offshore investors use crypto derivatives due to IPO access restrictions.
- CXMT's Shanghai IPO is scheduled for next Monday.
Crypto Valuation Exceeds Official IPO Price
Crypto traders are pricing ChangXin Memory Technologies (CXMT), China's largest memory chipmaker, at approximately $425 billion on the decentralized derivatives exchange Hyperliquid. This valuation is based on perpetual futures contracts tracking CXMT, which traded near $6.35 per share on Thursday, peaking recently at $8.60.
The implied market capitalization of $425 billion (2.9 trillion yuan) would make CXMT more valuable than Industrial and Commercial Bank of China, currently the mainland's largest listed company. In contrast, CXMT's official offer price for its Shanghai IPO is 8.66 yuan ($1.28) per share, giving it a valuation of 579 billion yuan ($86 billion) at listing.
Upcoming Shanghai IPO
CXMT is set to debut on the Shanghai stock exchange next Monday. Its official listing valuation of 579 billion yuan would still make it the largest IPO in the history of the tech-oriented STAR market. The company did not immediately comment on the crypto-driven valuation.
Access Restrictions Drive Crypto Demand
The significant premium on crypto platforms is partly fueled by offshore investors who are unable to participate directly in the Shanghai listing. The Shanghai debut is effectively closed to foreigners, and even mainland retail investors face high barriers, including a 500,000 yuan account balance and two years of trading experience for the STAR market.
Hyperliquid's perpetual contracts allow traders to speculate on assets like equities without holding the underlying asset, providing an alternative for investors seeking exposure to CXMT.
Analyst Perspective on Premium
Analysts suggest the premium reflects both the scarcity of access and conviction in CXMT's business. Eric Chen, co-founder of Injective Labs, stated that such a market forecasts the potential opening price of the stock rather than valuing the company itself. He noted that with limited access for global investors and few liquid venues to short the stock, the price reflects the most optimistic participants seeking exposure they cannot get directly.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
Crypto traders on a decentralized exchange are valuing China's largest memory chipmaker, ChangXin Memory Technologies (CXMT), at $425 billion, significantly higher than its official IPO valuation. This speculative valuation, driven by offshore investors lacking direct access to the upcoming Shanghai listing, highlights the demand for exposure to major Chinese tech companies through alternative financial platforms.