[News] YMTC’s $4.9B IPO Reportedly Pushed to 1H27 Amid Market Rout; CXMT Doubles Down on Buybacks

China’s NAND giant YMTC has become the latest casualty of stock market turbulence, reportedly putting its Shanghai IPO on hold, according to Reuters. Initially eyeing a late-October or early-November launch, the company could now seek a listing in 1H27, depending on market conditions, sources said.

Reuters, citing an internal notice, reports that YMTC attributes the suspension to “various factors” without providing further details, with the postponement likely stretching for several months. YMTC’s parent company, CCSH Corporation, sought to raise CNY 33 billion ($4.9 billion) through an IPO on Shanghai’s tech-focused STAR Market, filing its application in August, the report suggests.

However, a separate industry source suggested that the reports of a suspension may be inaccurate, indicating that YMTC’s IPO process is still underway.

Market Selloff Triggers Tighter IPO Scrutiny in China

The delay comes amid a sharp downturn in Chinese equities. According to Reuters, China’s benchmark CSI 300 Index tumbled 8.5% in October, its worst monthly performance in over a decade, while the STAR 50 Index, tracking Shanghai-listed semiconductor and AI firms, had plunged 40% from its July peak by month-end.

The market rout has prompted tighter regulatory scrutiny of new listings, adding another hurdle for YMTC’s IPO ambitions. Reuters reports that the China Securities Regulatory Commission (CSRC) has informally urged investment banks to slow IPO activity among AI and semiconductor companies.

Maeli Business, citing Financial Times, explains that Chinese financial regulators have instructed investment banks to temporarily halt IPOs and large-scale share sales amid a prolonged stock market downturn. The latest restrictions are seen as an extension of Beijing’s stock market stabilization efforts introduced last month, which included encouraging corporate share buybacks and urging investors to refrain from selling their holdings, the report adds.

Meanwhile, as Beijing steps up efforts to stabilize the stock market, YMTC’s domestic memory peer CXMT, which debuted on Shanghai’s STAR Market in July, is moving to expand its share buyback program. According to Hong Kong China News Agency, CXMT announced on November 4 that Chairman Zhu Yiming had proposed more than doubling the repurchase ceiling, raising the planned buyback from CNY 1–2 billion to CNY 2.5–5 billion.

IPO Setback Raises Questions Over YMTC’s Expansion Plans

With its planned IPO now delayed, attention is turning to the potential implications for YMTC’s capacity expansion and technology roadmap. The Chinese NAND maker has already been investing heavily in R&D to support its growth ambitions. According to an earlier EBN report, YMTC spent a cumulative RMB 14.2 billion on R&D between 2023 and 2025, accounting for over 5% of revenue. Its 4,796 R&D employees represented more than 30% of its workforce, while its registered invention patents totaled 5,611.

YMTC’s expansion ambitions extend well beyond R&D. According to an April Reuters report, the company plans to add three fabs, potentially more than doubling its production capacity once fully operational.

Each new facility is expected to reach 100,000 wafers per month, compared with the combined 200,000-wafer monthly capacity of its two existing plants, Reuters noted. The third Wuhan fab is slated to begin operations later this year, with capacity targeted at 50,000 wafers per month by 2027.

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(Photo credit: YMTC)