CXMT Tops A-Share Market Cap List: Bank and Insurance Holdings Map Emerges

On July 27, Changxin Technology, a leading domestic storage company, debuted on the capital market. On its first day of listing, Changxin Technology's full-day increase reached 465.82%, with a turnover of 141.1 billion yuan, setting a new single-day record for an A-share individual stock.

Based on the closing price of 49 yuan per share, Changxin Technology's total market value is about 3.28 trillion yuan, rising to the top of the A-share market capitalization rankings. This market value also surpasses the $465.6 billion closing value of U.S. tech giant Intel on the previous trading day.

With Changxin Technology's preliminary pricing completed in the secondary market, the market value of the equity holdings of many financial institutions that participated in its early equity investment has also emerged. According to publicly available information, the lineup of financial institutional investors behind Changxin Technology mainly consists of bank funds, insurance funds, and bank wealth management subsidiaries.

Different types of capital, based on their own asset-liability characteristics, have adopted differentiated strategies at various financing stages of Changxin Technology.

In the early equity financing stage, bank financial asset investment companies (AIC) and other subsidiary investment platforms and industrial funds under banks accounted for a large proportion.

Specifically, funds related to China Merchants Bank made early arrangements via CMB Yunting Fund. CMB Yunting Fund holds 952 million shares, and based on the closing price, the market value of these shares is about 46.653 billion yuan, ranking among the largest known bank participants.

Among major state-owned banks, the participation paths of Agricultural Bank of China and China Construction Bank are different.

Agricultural Bank of China participated directly through its AIC institution, ABC Financial Asset Investment, holding 574 million shares, corresponding to a market value of 28.126 billion yuan.

China Construction Bank made a dual-line arrangement through CCB International (Shenzhen) and Jianxin Navigator Fund, holding 408 million and 285 million shares respectively, with a combined market value close to 34 billion yuan.

The participation path of insurance funds is more diverse, including both direct primary market equity investment and strategic placement during the issuance phase.

In terms of primary direct investment, Hexie Health holds 901 million shares, corresponding to a current market value of 44.164 billion yuan, making it the single largest institution among insurance funds.

China Life Investment and PICC Capital hold 476 million and 467 million shares respectively, both with a book value around 23 billion yuan.

In addition, Sunshine Life and China Post Life each hold 225 million shares, corresponding to a market value of about 11.041 billion yuan; PICC Sci-Tech Innovation holds 90.13 million shares, corresponding to a market value of 4.416 billion yuan.

In addition to early direct investment, insurance funds also increased their holdings during Changxin Technology's IPO through strategic placement.

PICC Property & Casualty, China Life, China Post Life, and Taikang Life each acquired 11.5473 million shares at a cost of 8.66 yuan per share.

Based on the closing price on the first day of listing, the value of the allocated shares per institution has risen to 566 million yuan, creating some paper gains.

Unlike the long-term attributes of bank direct investment capital and insurance funds, bank wealth management subsidiaries mainly participated via offline placement during the offering window period.

In a net-value environment, wealth management subsidiaries require multi-asset, multi-strategy allocation methods, and offline new share subscriptions are a regular channel for boosting returns on fixed-income products. Therefore, the scale acquired by each of these institutions is relatively small, but the scope of participation is wide.

Among the offline allocation list in July this year, Xinying Wealth, Ningyin Wealth, China Post Wealth, Xingyin Wealth, Nanyin Wealth, and Minsheng Wealth all participated.

Among them, Xinying Wealth and Ningyin Wealth were allocated the largest number of shares, at 2.53 million and 2.4797 million shares respectively, corresponding to the latest market value of between 122 million and 124 million yuan. The market values allocated to China Post Wealth, Xingyin Wealth, Nanyin Wealth, and Minsheng Wealth ranged from 7 million to 55 million yuan.

Overall, different types of financial institutions completed asset allocation through differentiated entry points.

Bank funds and insurance institutions mainly rely on their advantage of long-duration funds to invest directly in the primary market and provide early capital; bank wealth management subsidiaries tend to engage in liquidity-friendly operations during the issuance phase.

Currently, the early capital inputs from each institution have been reflected as their present book value.

However, both the primary equity investments and strategic placement shares mentioned above are subject to clear lock-up clauses. The actual capital returns of these financial institutions will ultimately depend on the secondary market environment after the lock-up period expires, as well as each institution's specific exit schedule.

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