Dan Bin: The listings of ChangXin and SK Hynix are major positives, and China's A-share market is capable of nurturing trillion-dollar hard tech leaders.

Dan Bin, chairman of Oriental Harbour, published an article on Chinese investment platform Xueqiu today, taking a relatively optimistic stance on market concerns that the consecutive listings of Changxin Memory and SK Hynix would divert capital. Dan Bin pointed out that if the two memory firms reach market capitalizations of RMB 3 trillion, 5 trillion, or even 7 trillion after listing, the overall market cap space for hard tech sectors on the A-share and Hong Kong stock markets will be fully unlocked, a major positive in the long run. He noted that the A-share market has long been plagued by the "market cap ceiling curse", with baijiu giants serving as the market's market cap benchmarks, making it hard for other firms to surpass their scale. However, given China's current global industrial standing, the A-share market is fully capable of nurturing a hard tech giant with a total market cap exceeding $1 trillion. In contrast, the combined market cap of just two or three U.S. tech giants equals the total size of the entire A-share market, a pattern that does not align with China's current economic strength. He expressed great anticipation that hard tech enterprises in sectors like memory will achieve value breakthroughs, driving a reshaping of China's domestic capital market landscape.