Reference News Network, October 29 report. According to the "Nikkei Business Publications" on October 28, as of the 27th, the Shanghai Composite Index has risen for three consecutive trading days, continuously approaching the psychological level of 4000 points. The government's domestic production policy is becoming a focus of investment, with funds flowing into multiple fields such as semiconductors, robotics, and software. Enterprises valued in trillions of yen (100 yen is approximately 4.65 yuan RMB - this newspaper note) have emerged one after another, and there are already cases where they have surpassed their European and Japanese counterparts.

The parent company of Changxin Memory, Changxin Technology, has started preparing for its initial public offering, which is expected to be listed on the Shanghai Stock Exchange as early as the first quarter of 2026. According to media reports, the company's highest valuation target is 300 billion yuan, close to that of Japan's Kioxia Holdings, which has a market value exceeding 5 trillion yen.

Changxin Memory is well known for realizing China's long-standing dream of domestic production of dynamic random access memory (DRAM). The funds raised from issuing shares are likely to be used for developing high-bandwidth memory required for artificial intelligence chips. The stock market is full of expectations, which echoes the sharp rise in the stock price of another Chinese semiconductor manufacturer, SMIC.

The "14th Five-Year Plan" implemented starting in 2026 aims to accelerate self-reliance and strength in high-tech fields. A five-year planning outlook compiled by an investment bank under China Bank predicts that government funds will flow into advanced manufacturing sectors.

With the rising number of market views represented by Li Yeyue, a strategist at Puyin International, as the Shanghai Composite Index is about to break through the 4000-point barrier, "investors should look for investment opportunities in the sectors supported by the national strategy."

As funds flow into key industries bearing the responsibility of critical product localization, some companies' market values have now caught up or even surpassed their Western counterparts. For example, Northern Semiconductor Equipment Group, a manufacturer of semiconductor manufacturing equipment, has a market value of about 43 billion U.S. dollars, which has increased by 50% compared to the end of 2024, surpassing Japan's Disco Corporation.

At the same time, the market value of Contemporary Amperex Technology Co., Limited (CATL), the world's largest manufacturer of automotive power battery, has also increased by nearly 50%, far exceeding that of its competitor, South Korea's LG Energy Solution. The highest valuation of the robot company Yushu Technology, which is planning an initial public offering, is also expected to reach 1 trillion yen.

Li Hao, associate professor at the University of Tokyo, pointed out: "China is striving to create a situation where the world cannot do without Chinese products, while reducing its dependence on foreign technologies and products."

China once focused on the localization of liquid crystal displays and solar panels, while simultaneously expanding its market share in industries such as rare earths. Subsequently, a similar situation emerged in the automotive power battery and general semiconductor industries.

On September 10, people were discussing at the CATL booth at the International Motor Show in Munich, Germany. (Xinhua News Agency)

Original text: https://www.toutiao.com/article/7566529960983151144/

Statement: This article represents the personal views of the author. Welcome to express your attitude below using the [top/down] button.