YMTC puts Shanghai IPO on hold amid weak market, sources say
Chinese chipmaker Yangtze Memory Technologies (YMTC) has paused its Shanghai IPO, citing 'various factors' in an internal memo, as regulators tighten approvals and tech stocks slump. The delay could last months, with a possible listing in the first half of 2027 subject to market conditions.
Chinese flash-memory chipmaker Yangtze Memory Technologies Co (YMTC) has paused its planned initial public offering (IPO) on Shanghai's Nasdaq-style STAR market, according to a company memo and people with knowledge of the matter. The decision comes as regulators tighten approval for share sales amid a struggling stock market.
YMTC's parent company, CCSH Corporation, filed for the IPO in August, aiming to raise 33 billion yuan. The company, a key player in Beijing's push for technological self-reliance, had planned to begin strategic share placement in late October and early November. However, that process has been put on hold due to 'various factors', according to an internal note sent to staff and seen by Reuters. The note did not elaborate, and two sources said the delay could last several months.
The IPO delay could disrupt YMTC's capacity expansion plans. The company, China's largest maker of NAND chips used in phones, computers and data centres, has grown rapidly since a global memory chip shortage last year, allowing it to take market share from established suppliers such as South Korea's Samsung and SK Hynix. Two people said YMTC will likely go public in the first half of 2027, subject to market conditions, as tech stocks have been hit by heavy selloffs in recent months.
The blue-chip CSI300 Index in China slumped 8.5 per cent in October, its worst monthly performance in more than a decade. The STAR50 index of Shanghai-listed chip and artificial-intelligence firms tumbled 40 per cent from its July peak through the end of last month. Regulatory scrutiny of new listings has also tightened as market conditions weakened, according to three people with knowledge of the matter.
Separately, the China Securities Regulatory Commission (CSRC) has given informal guidance to investment banks to slow down IPOs by AI and chip companies, according to four people with knowledge of the matter. The CSRC did not respond to a request for comment. As per the Shanghai stock exchange website, YMTC's IPO application is in the 'inquiry stage'. YMTC also did not respond to a request for comment, and the people declined to be named as the delay was confidential.