Shares of ChangXin Memory Technologies Inc. (ticker: "ChangXin Technology") surged on its first day of trading on the Shanghai Stock Exchange's STAR Market, closing at 49.00 yuan per share on July 27. This represents a gain of more than 465%, with trading volume exceeding 140 billion yuan, setting a new single-day record for A-share markets.

The company's total market capitalization reached approximately 3.28 trillion yuan, surpassing Industrial and Commercial Bank of China to become the most valuable stock on the A-share market. For context, its valuation now exceeds that of two Kweichow Moutai companies combined, and investors who secured an IPO allocation earned roughly 27,000 yuan per tranche.

ChangXin Technology is China's largest and most advanced developer and manufacturer of Dynamic Random Access Memory (DRAM), headquartered in Hefei, Anhui province, and founded in 2016. The company's public listing highlights the success of the Hefei state-owned capital system, which acted as the primary incubator, nurturing the firm from its inception.

According to the prospectus, ChangXin Technology has no controlling shareholder or actual controller. However, a look at the shareholding structure reveals that its two largest shareholders, Hefei Qinghui Jidian and ChangXin Integration, are both ultimately controlled by Hefei state-owned entities. Other funds such as Chan Tou No.1, Hefei Jianchang, and Chan Tou High-Growth also carry Hefei state capital backgrounds.

Before the IPO, the Hefei state capital system collectively held 36.79% of the company's shares. After the IPO's dilution, its stake stood at approximately 33.1% on the listing day. Having invested a total of about 24.8 billion yuan over the past decade, the Hefei state capital now holds a paper profit of nearly one trillion yuan, based on the closing market value.

Market analysts describe this as the most classic example of a local government guiding fund investing in hard technology. This is not the first successful move by Hefei state capital, which has earned a reputation as "China's best venture capitalist" due to its precise investments in hard-tech projects such as Gigadevice Semiconductor, BOE Technology Group, and NIO.

According to the official Hefei municipal government publication, with the listing of ChangXin Technology, Hefei now has 97 listed companies, including 90 on A-share markets and 22 on the STAR Market. This ranks Hefei 6th among all Chinese cities and 2nd among provincial capitals in terms of STAR Market listings.

The Hefei Municipal Financial Office reported that the city aims to add 2 new domestic IPOs, 1 domestic listing approval, and 2 overseas IPOs by 2026. The pipeline currently includes 2 domestic filing companies, 6 overseas filing companies, and 5 companies listed on the New Third Board. There are also 3 domestic companies under review and 13 overseas companies under review, forming a well-ordered queue of potential public offerings.