Foreign Media: China's state-owned banks have reaped substantial profits from early investments in Longxin Memory Technologies (CXMT) shares, aligning with the nation's strategy for technological self-reliance.
CXMT, China's largest DRAM chip manufacturer, has seen its market capitalization surpass 3 trillion RMB (approximately 443 billion USD), making it the most valuable company on China's A-share market.
Industrial Bank, Construction Bank, Agricultural Bank, Bank of China, and Communications Bank have all invested in CXMT through their respective financial asset investment companies (AICs). Among them, Construction Bank holds the highest stake at 1.714%, while Bank of China holds the lowest at just 0.38%.
This investment wave reveals a transformation in China’s equity investment landscape: traditional "old money" from state-owned banks is now emerging as a key capital force in the tide toward technological independence. Due to domestic financial regulations, commercial banks are prohibited from direct investments and must instead conduct equity investments via their AIC subsidiaries.
Original Source: toutiao.com/article/1872019326441536/
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