Chinese shares closed higher on Monday, as the blockbuster debut of memory chipmaker ChangXin Memory Technologies (SHA:688825) or CXMT, revived investor sentiment and reassured markets despite initial fears of a liquidity drain.
The Shanghai Composite Index, the main gauge of Chinese stocks, closed 1.2% higher to 3,858.25. The Shenzhen Component Index jumped 2.7% to 14,148.73.
CXMT jumped as much as 535% to 55.03 yuan per share on its first day of trading on the Shanghai bourse. The stock eventually closed at 49.00 yuan apiece, up 466% from the chipmaker's initial public offering price of 8.66 yuan apiece.
The rally made CXMT the most valuable stock in China, according to FactSet data. Previously it was Contemporary Amperex Technology (SHE:300750) or CATL in Shenzhen and Industrial and Commercial Bank of China (SHA:601398) or ICBC in Shanghai.
The debut, following Asia's biggest IPO this year, provided a much-needed boost to a market that had lost over $1.5 trillion in value earlier in July amid tech selloffs and geopolitical tensions, ETMarkets reported.
In other company news, MaxOne Semiconductor Suzhou (SHA:688809) plans to use 1.03 billion yuan in excess initial public offering proceeds to fund two probe card manufacturing projects, while postponing the usable state date of its Nantong research and development and production facility to December 2027 from November 2026. Shares of the semiconductor testing company rose 8% Monday.