Securities Broker/Dealer - China: How China market reacted to large IPOs?

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Securities Broker/Dealer - China: How China market reacted to large IPOs?

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Securities Broker/Dealer - China

How China market reacted to large IPOs?

Industry Overview

CXMT IPO set to be the largest in China in years 28 May 2026

As CXMT obtained the regulatory approval for its a-share listing this week, the A-share Equity

market is expecting its largest IPO in the past four years in terms of fundraising size and China

also the largest non‑SOE IPO since SMIC’s (688981 CH) listing on the Shanghai STAR Securities Broker/Dealer

Market in Dec 2019. Based on its prospectus, CXMT targets to raise RMB29.5bn in its Michael Li >>

STAR Market IPO in coming months. Research Analyst

Merrill Lynch (Hong Kong)

Large IPO stock performance: generally strong +852m.li@bofa.com3508 7381

We list 19 large IPOs with fund raising size >RMB10bn each in the past six years. 79% Susie Liu, CFA >>

of the IPOs reported positive performance after one week and 68% after one month. ResearchMerrill LynchAnalyst(Hong Kong)

53% and 63% of the IPOs recorded >50% return after one week and one month. +852 3508 8456

susie.liu@bofa.com

Notably, even IPOs launched during weaker market conditions (e.g., 2H22) delivered

strong initial returns. The data suggest a continued preference among Chinese investors

for newly listed stocks, even the large cap ones. CXMT: ChangXin Memory Tech

Major index performance: no consistent pre-IPO pattern SOE: State-owned Enterprise

IPOs in China have no longer frozen subscription funds since 2016. Thus, despite large

fundraising sizes, the impact on market liquidity has been limited, and the impact on the

market shows no consistent pattern before IPOs based on our analysis. SHCOMP and

STAR50 reported positive returns in over 60% of cases one week before the IPOs,