Chinese equity markets extended their sharp decline on Friday, with benchmark indices falling more than 3% to record their worst weekly performance in over two years.
The sell-off was triggered by the pricing of ChangXin Memory Technologies (CXMT) initial public offering, which has reignited investor concerns regarding valuation levels and competitive dynamics in the artificial intelligence hardware sector.
8 billion, placing it among the largest semiconductor listings in recent history.
The market reaction was particularly severe for AI-related equities, which faced heavy selling pressure as traders reassessed risk exposure.
The broad-based decline reflects a shift in sentiment, with investors moving away from high-growth technology names amid fears that the massive capital raise by CXMT could disrupt existing market structures or signal a peak in speculative enthusiasm for domestic chipmakers.
CXMT, a leading domestic memory chip manufacturer, priced its IPO on the Shanghai Star Market at 8.66 yuan per share.
The deal aims to raise approximately $9.8 billion, placing it among the largest semiconductor listings in recent history.