Bloomberg: Yangtze Memory completes pre-IPO counseling, likely to become China's next large-scale chip IPO company.

According to a Bloomberg report, Chinese storage chip maker Yangtze Memory Technologies Co., Ltd. (YMTC) has completed its listing guidance, bringing it closer to a debut on the A-share market. Data from the China Securities Regulatory Commission (CSRC) website shows YMTC has finished pre-listing guidance and is deemed to meet the requirements of a listed company in terms of corporate governance structure, financial foundation, and internal control system. Market participants believe YMTC is expected to follow the capital market path of its competitor ChangXin Memory Technologies (CXMT), raising funds via IPO to expand production capacity and support China’s semiconductor industry self-reliance. Previously, CXMT completed the second-largest IPO in mainland China, raising around 66.6 billion yuan; its share price surged after listing, briefly making it one of China’s most valuable listed companies. Both YMTC and CXMT are key players in China’s semiconductor independent supply chain. Driven by AI demand, global storage chip supply tightness has drawn capital market attention to the two firms, with related chip industry chain stocks rising sharply recently. According to reports, YMTC’s NAND flash shipments in the second quarter of this year surpassed Japan’s Kioxia for the first time, becoming the world’s third-largest NAND flash supplier and further narrowing the market gap with Samsung Electronics and SK Hynix. However, news of YMTC’s IPO push has also sparked market liquidity concerns. Some investors argue that the listing of a large tech firm may siphon market funds, putting short-term pressure on tech stocks. On Wednesday, the Shanghai Stock Exchange STAR 50 Index fell 6.9%, marking its largest single-day drop in nearly a month.