On July 27, China's domestic DRAM memory chip leader, Cxmt Corporation (CXMT), officially listed on the Shanghai Stock Exchange's STAR Market (科创板). Its shares surged 471% at the open, reaching a total market capitalization of 3.31 trillion yuan, surpassing Industrial and Commercial Bank of China (ICBC) to become the largest listed company on the A-share market by market value.

In the sector, the STAR Market Chip Index (科创芯片) opened lower, with the STAR Market Chip ETF Huabao (589190), which has a lower expense ratio, seeing its intraday price drop over 4% before staging a sharp V-shaped recovery, currently trading up 0.73%.

Individual stocks saw more gains than losses, with semiconductor materials and equipment leading the charge. Chengdu Huawei Microelectronics and CSIC Specialty Gas posted double-digit gains, Zhongke Feice rose over 8%, and Huafeng Test & Control gained more than 5%. Additionally, Yuanjie Technology jumped over 6% following its earnings report, which indicated a net profit attributable to the parent company for the first half of the year increased by 1196.91% to 1304.98% year-on-year.

According to media reports, it is rumored that Cxmt Corporation signed a five-year agreement with ByteDance this month valued at over $7 billion. The report also indicated that CXMT plans to enter the US market, but its capacity is strained due to robust domestic demand. CXMT is constructing two new factories in Shanghai and Hefei, Anhui province, which will double its capacity to over 600,000 wafers per month. One insider source suggested that if all goes well, CXMT's capacity could surpass that of Micron Technology by 2030.

Data from market research firm Omdia shows that, based on DRAM sales in the fourth quarter of 2025, CXMT's global market share has risen to 7.67%, ranking fourth globally and first in China. Industry analysis firm SemiAnalysis stated in June that CXMT's full-year revenue in 2026 could exceed $50 billion, with its market share projected to increase from 9% in 2025 to 12% in 2027.

As one of the few domestic leaders in large-scale DRAM R&D and production, Cxmt Corporation's IPO funds are earmarked for capacity expansion and advanced process R&D. This investment is expected to ripple through the entire industrial chain, including equipment, materials, packaging, testing, and distribution. On one hand, CXMT's expansion will generate sustained and substantial procurement demand for upstream semiconductor equipment and materials, accelerating product verification and volume introduction for upstream supply chain companies, thereby enhancing the domestic penetration rate of the upstream supply chain. On the other hand, it will drive midstream packaging and testing firms and downstream memory module manufacturers to form deeper ties with local core wafer foundries, while also helping downstream companies respond flexibly to market demand, fostering the development and upgrade of the downstream industrial cluster and further refining the industry ecosystem.

Datong Securities stated that from a long-term industrial perspective, the logic of AI-driven technological innovation and industrial upgrading has not fundamentally reversed due to short-term market volatility. The semiconductor industry outlook remains unchanged. On the supply chain side, attention should be paid to sub-sectors within hardcore technology areas like semiconductor equipment, semiconductor materials, and chips, where related companies have ample order books and strong earnings visibility in the mid-term report.

To capitalize on the chip industry's "super cycle," investors can consider high-volatility, 20% daily price limit products. Public information shows that the STAR Market Chip ETF Huabao (589190) and its linked funds (Class A: 021224, Class C: 021225) passively track the STAR Market Chip Index (上证科创板芯片指数). While offering balanced allocation and full-chain coverage of the chip industry, the fund has a weight of over 90% in core areas such as integrated circuits and semiconductor equipment, providing high hard-tech exposure and strong offensive characteristics.

*Public data indicates that the STAR Market Chip ETF Huabao (589190) has a management fee of 0.3%, a custodian fee of 0.08%, and a total expense ratio of 0.38%, which is relatively low among ETFs tracking the same index.

Data sources: Shanghai and Shenzhen stock exchanges, etc.

Institutional perspective source: Datong Securities, July 22, 2026, "Tech Stocks Accelerate Adjustment, Semiconductor Outlook Unchanged."

ETF fee related notes: When investors subscribe for or redeem fund shares, the subscription/redemption agent may charge a commission of up to 0.5% of the standard rate, which includes fees charged by the stock exchange, registration institution, etc. Fee notes for linked funds: For Huabao STAR Market Chip ETF Linked Fund Class A, the subscription fee (front-end) is 1,000 yuan per transaction for subscription amounts of 2 million yuan or more, 0.2% for amounts between 1 million yuan and 2 million yuan, and 0.5% for amounts below 1 million yuan. The redemption fee is 1.5% for holding periods of less than 7 days and 0% for holding periods of 7 days or more. Huabao STAR Market Chip ETF Linked Fund Class C does not charge a subscription fee, with a redemption fee of 1.5% for holding periods of less than 7 days and 0% for holding periods of 7 days or more. The sales service fee is 0.2%.

Risk disclaimer: STAR Market Chip ETF Huabao (589190) and its linked funds passively track the STAR Market Chip Index, which has a base date of December 31, 2019, and a release date of June 13, 2022. The annual returns of the STAR Market Chip Index over the past 5 complete fiscal years were 6.87% in 2021, -33.69% in 2022, 7.26% in 2023, 34.52% in 2024, and 61.33% in 2025. The annualized volatility of the STAR Market Chip Index over the past 5 complete fiscal years was 34.32% in 2021, 36.60% in 2022, 28.64% in 2023, 44.67% in 2024, and 34.34% in 2025. The composition of index constituents is adjusted periodically according to the index compilation rules. Historical backtested performance does not predict future index performance. This product is issued and managed by Huabao Fund. Distributors do not bear the risk of investment, payment, or risk management of the product. Investors should carefully read the fund's legal documents, such as the "Fund Contract," "Prospectus," and "Fund Product Information Summary," to understand the fund's risk-return characteristics and choose a product that is suitable for their own risk tolerance. The fund manager assesses the risk rating of this fund as R4 (medium-high risk), suitable for investors with a suitability rating of C4 or above. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Past performance is not indicative of future results. Fund investment involves risk. Investors should be cautious! Sales institutions (including the fund manager's direct sales institutions and other sales institutions) conduct risk assessments on this fund based on relevant laws and regulations. Investors should promptly pay attention to the suitability opinions issued by the fund manager. The suitability opinions of different sales institutions may not be consistent, and the risk rating of the fund product issued by any sales institution shall not be lower than the risk rating assessment made by the fund manager. There may be differences between the fund's risk-return characteristics stated in the fund contract and the fund's risk rating due to different considerations. Investors should understand the fund's risk-return profile and choose fund products carefully based on their own investment objectives, horizon, experience, and risk tolerance, bearing the risks themselves. Registration of this fund by the China Securities Regulatory Commission does not imply that it makes a substantive judgment or guarantee regarding the fund's investment value, market prospects, or returns. Fund investment involves risk. Investors should be cautious!