Earned 4.6 billion less!
On its first day of listing, CXMT surged over 500%, with a total market capitalization exceeding 3.5 trillion yuan, topping the A-share market cap rankings; Country Garden Venture Capital previously sold its equity at a low price, missing out on nearly 46 billion yuan in potential gains; meanwhile, the Hang Seng Tech Index strengthened on news, with Alibaba and other placement shareholders seeing paper profits exceeding 160 billion yuan.
The biggest focus of the market today is undoubtedly the listing of CXMT on the STAR Market. In just half a day, CXMT's share price rose by over 500%, trading volume exceeded 100 billion yuan, and its total market capitalization surpassed 3.5 trillion yuan, surpassing ICBC to become the largest company by market cap on the A-shares. No matter how you look at it, the listing of CXMT is an epic event. The founder, Zhu Yiming, saw the value of his holdings surge by 70 billion yuan, and combined with his stake in GigaDevice, his net worth approaches 100 billion yuan. The management team, employee shareholders, and early investors are all reaping huge profits.
However, the boss of Country Garden isn't smiling today. Back in 2021, Country Garden VC participated in CXMT's Series B financing, investing 900 million yuan for a 1.56% stake. But in December 2024, Country Garden VC transferred this equity to Hefei Jianchang for 2 billion yuan, at a price of only 2.22 yuan per share. With CXMT's shares breaking through 50 yuan upon listing, a simple calculation shows that Country Garden missed out on nearly 46 billion yuan in profits. Currently, Country Garden's Hong Kong stock market cap is only around 8 billion HKD, and Country Garden Services has a market cap of 18.2 billion HKD; together, they are worth less than 30 billion HKD. If Country Garden hadn't sold its CXMT shares back then, would the situation have been different? There are no 'ifs' in the capital markets; one can only say that choices matter more than effort.
Today, CXMT's trading volume set a new record. A turnover of over 100 billion yuan means over 100 billion yuan in funds were bought in, while an equal amount was sold. Which side will be proven right remains to be seen over time.
Regarding the broader market, many people were previously worried that CXMT's listing would cause short-term pressure, but no such impact has been observed today. A-shares performed steadily, and Hong Kong stocks, whether the HSI or the Hang Seng Tech Index, showed strong trends, with the Hang Seng Tech Index rising over 1% today. Components of the Hang Seng Tech Index indirectly benefited from this event. Alibaba is a major beneficiary, holding a total of 5% of CXMT through two entities, resulting in paper profits exceeding 160 billion yuan. Additionally, Meituan and Xiaomi also participated in the placement, with their shares locked for 18 months. Although the amounts weren't extremely large, the returns were still substantial. Today, Meituan rose over 6% at one point, and Xiaomi rose over 8%.
As I mentioned earlier, the listing of CXMT may serve as an important catalyst for the Hang Seng Tech Index to strengthen.
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