ChangXin Memory Technologies (CXMT) held its long-awaited IPO on Monday, July 27th. The stock listing coincided with a surge of activity on the Hyperliquid exchange, as CXMT attracted attention from both large and retail traders.
CXMT's IPO was expected to be the largest stock listing on the Shanghai Stock Exchange since 2011. As Cryptopolitan reported, the buzz around Chinese AI-related stocks was seen as a new opportunity, and crypto traders immediately seized it.
The CXMT exchange is already available through TradeXYZ after the platform acquired rights to this ticker on Hyperliquid for 500 HYPE.
As of July 27th, CXMT on HIP-3 exceeded $45 million, and after an initial record spike, daily trading volume reached a new peak, surpassing $9 million. The IPO day saw significant selling as both perpetual futures and the underlying shares were in price discovery.
CXMT Shares Soar in Shanghai Trading
Chipmaker CXMT became China's most valuable AI infrastructure company after its shares surged 470-530% upon its debut on the Shanghai exchange. The company's total market capitalization is estimated at over $483 billion, making it the most valuable company listed on an exchange in mainland China.
The stock market debut also tests the resilience of forecasts for chipmaker and AI-related stocks. CXMT is a major DRAM producer, a basic component used in consumer electronics and data centers.
Funds raised from the IPO are expected to be directed towards production expansion and additional R&D.
Beyond CXMT's business model, a key driver for the rapid price surge was peak demand for the shares, significantly exceeding IPO volumes.
The demand spread to blockchain trading as well, with Hyperliquid offering an entry point for early price discovery speculation. On the first day of trading, the HIP-3 market for CXMT reached 1.14% of the volumes on the Shanghai Stock Exchange, jumping to $234 million in the first hours after the IPO.
Former Major $BTC Market Player Shifts to CXMT
On the HIP-3 platform, the price of CXMT shares fluctuated from over $8 to $5.99. The price range set by perpetual futures traders was closer to the actual IPO price than the company's initial target price of $1.20 per share.
Following the IPO, the HIP-3 company held 13 large positions in CXMT shares, of which seven showed bullish sentiment, taking long positions.
The leader still holds a short position with a notional value of $17.87 million. After the price rise, the volume investment leader incurred an unrealized loss of $1.24 million.
Another major player, primarily known for their positions in $BTC, has fully switched to trading CXMT. Their position still stands at $4.81 million, fluctuating between a profit of $300k and small temporary losses. Large players are still waiting for the stock to choose its own direction in the first days after the IPO.
At this point, it is unknown whether any of the major investors managed to secure IPO shares directly from the company. In that case, selling CXMT shares short would be a hedging strategy in case of a sharp price drop after the initial hype. Such a scenario also points to Hyperliquid as a hedging tool that could be used in other upcoming major IPOs.
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