CXMT's implied valuation in pre-IPO perpetual futures trading surpasses China's largest listed firm ICBC

China's largest memory chipmaker ChangXin Memory Technologies (CXMT) saw its linked-perpetual futures contracts trade at US$6.35 (HK$49.53) per share on a crypto platform, which implies a market capitalization of US$425 billion to surpass Industrial and Commercial Bank of China (1398) as the mainland's most valuable listed firm, CNBC reported.

After the crypto startup Trade.xyz launched the perpetual futures contract tied to CXMT, it was once traded as high as US$8.6 per share, compared to its offer price of 8.66 yuan (HK$10.03), showing investors' strong interest in the mainland company, according to the report.

Based on its current price at US$6.35 on the crypto platform, CXMT's market valuation of about US$425 billion, or 2.9 trillion yuan, overtakes that of Industrial and Commercial Bank of China at 2.56 trillion yuan to become the most valuable firm in the mainland market. 

This came days before CXMT's debut on Shanghai's Nasdaq-style STAR Market next Monday, which seeks to raise at least 57.9 billion yuan (HK$67.07 billion).

As overseas investors face various regulatory restrictions on engaging in initial public offerings in mainland China, they turn to proxy trades like crypto derivatives to pocket profit.

Previously, crypto platforms including Trade.xyz and Coinbase also offered pre-IPO perpetual futures tied to SpaceX for international investors to speculate on the price ahead of the world's largest IPO.

𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗧𝗵𝗲 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗔𝗽𝗽 ↓