How China DRAM champion CXMT’s MSCI entry could lure fund inflows, cement its top ranking
The inclusion of ChangXin Memory Technologies (CXMT) in a broad MSCI gauge of Chinese stocks may strengthen the chipmaker’s position as the most valuable stock on the onshore market, with the move expected to spur passive buying, analysts say. CXMT, China’s biggest maker of dynamic random access memory (DRAM) chips used mostly in electronic products, joined the MSCI China All Shares Index on…
China's DRAM leader, ChangXin Memory Technologies (CXMT), entered the MSCI China All Shares Index on Monday, potentially attracting fund inflows and solidifying its top ranking. The inclusion, which follows a 466% surge on its first day of trading, is expected to spur passive buying. CXMT, China's biggest maker of dynamic random access memory (DRAM) chips, became the second-largest constituent behind Hong Kong-listed Tencent Holdings by July 31.
Analysts expect the chipmaker to join the Star Market 50 index soon, which would draw billions of yuan from passively managed index funds. UBS Group highlighted CXMT as a rare investment opportunity, projecting its share of global DRAM bit supply to grow to around 10% by 2028.
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