Chinese DRAM memory chip leader Cxmt Corporation (SSE: 688825) officially debuted on the STAR Market (科创板), closing at 49 yuan per share on its first day, a surge of 465.82% from the issue price. This propelled its total market capitalization to 3.28 trillion yuan, making it the largest company by market value on the A-share market.
Behind this price explosion, 69 insurance institutions had been quietly positioned for an extended period. Based on the mid-day closing price of 54.65 yuan per share on the first day, these insurers collectively hold unrealized gains exceeding 85 billion yuan, calculated from their investments spanning early private placements, IPO strategic allotments, and offline subscriptions. Among them, six early-stage investors, with a combined low-cost investment of 2.385 billion yuan, have already realized profits exceeding 127.9 billion yuan.
From an industry perspective, the shift is irreversible. Over the long term, insurance capital is moving away from traditional "fixed income plus high dividend" strategies toward hard-tech sectors, a new pathway gaining recognition across the entire industry.
Cxmt Corporation Shows Strong Performance Over Two Trading Days
On July 27, Cxmt Corporation (688825) was listed as the largest IPO in the history of the STAR Market. The issue price was 8.66 yuan per share, and it opened at 49.5 yuan. It closed at 49 yuan per share on the first day, a 465.82% increase from the issue price, achieving a market cap of 3.28 trillion yuan and claiming the top spot for A-share market value.
On July 28, Cxmt Corporation maintained its strong momentum, closing the morning session at 48.20 yuan per share. Its total market cap remained above 3 trillion yuan, retaining its position as the largest company by market value.
This two-day rally solidifies Cxmt Corporation's status as the market's market cap leader, and its long-term impact on the A-share market may still be unfolding.
A Wealth-Generating Phenomenon
The strong performance over two days has also generated massive profits for early-stage investors. A retail investor allocated one lot, with an initial cost of less than 5,000 yuan, has earned over 20,000 yuan in two trading days.
The number of valid online subscription accounts for Cxmt Corporation reached 9.4288 million, with a lottery rate of 0.47%. This implies that hundreds of thousands of retail investors have reaped significant wealth.
Insurance Funds Reap Substantial Gains from IPO Allotments
However, the biggest winners from Cxmt Corporation are institutional investors, particularly insurance funds. Their involvement spans the entire lifecycle from early private placements, pre-IPO shareholding, to both offline and online subscriptions during the IPO.
According to analysis, a total of 69 insurance institutions hold shares in Cxmt Corporation. Based on the first day's mid-day closing price of 54.65 yuan, their combined unrealized gains exceed 85 billion yuan.
Among them, six insurers—Harmony Health, China Life Investment, PICC Capital, Sunshine Life, China Post Life, and PICC Science and Technology—were already present as shareholders during the earliest private financing rounds. These six insurers collectively contributed 2.385 billion yuan in paid-in capital when Cxmt Corporation was experiencing its deepest losses, holding 3.96% of the shares before the IPO.
At the first day's mid-day price of 54.65 yuan per share, the combined market value of their holdings exceeds 130.3 billion yuan, generating unrealized gains of over 127.9 billion yuan.
During the IPO phase, four insurers—PICC Property and Casualty, China Life, China Post Life, and Taikang Life—each received approximately 11.5473 million shares, with an initial investment of about 100 million yuan each. By the morning of the first day, this 400 million yuan investment had grown to approximately 2.528 billion yuan, yielding a combined unrealized gain of over 2.128 billion yuan.
According to reports, in the offline placement phase, six pension insurance companies, 19 insurance asset management companies, and seven life insurance companies participated, securing a total of approximately 5.665 billion yuan in allotments. At the mid-day price, this generated an unrealized gain of about 30.083 billion yuan.
From decisive entry during the worst losses to full participation during the IPO, insurance funds have executed a complete lifecycle investment in Cxmt Corporation, showcasing the profit-making ability of long-term, intelligent capital.
Over the Long Term, Insurance Funds Are Increasing Allocations to the Tech Sector
Cxmt Corporation is a case study of insurance funds investing in the hard-tech sector, but it is far from the only example. As of the end of May 2026, the total assets of the insurance industry reached 43.23 trillion yuan. Over the past year, more than 10 insurers have established equity investment funds, with a focus on AI, semiconductors, and integrated circuits.
On July 10, just two weeks before Cxmt Corporation's listing, China Life announced the establishment of the Tianjin Shenghe Xincheng Equity Investment Fund, with a size of 5 billion yuan and an eight-year term. China Life itself contributed 4.999 billion yuan, primarily targeting the semiconductor process support sector. This is China Life's first dedicated semiconductor sector fund.
On July 20, five listed insurers—China Pacific Insurance, Ping An Insurance, New China Life Insurance, PICC, and China Life—collectively announced their commitment to increasing allocations to the hard-tech sector.
This trend is driven by both market forces and policy encouragement. From the perspective of insurers' own allocation needs, traditional fixed-income returns are insufficient to cover liability costs, and the risk of interest rate spreads losses looms over the industry.
Simultaneously, regulators have opened up space. The equity investment ceiling for insurers in certain solvency tiers has been raised from 30% to 50%, and the risk factor for STAR Market holdings has been reduced. This has further encouraged insurers' deep participation in the equity market.
The successful bet by insurance funds on Cxmt Corporation validates the compatibility between the long-duration nature of insurance capital and the growth cycles of hard-tech enterprises. This is not the starting point, nor will it be the end.
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