Chinese memory chipmaker YMTC denies back-door listing move amid semiconductor stock surge
Chinese chip firms have become the new darlings for retail investors, who see more opportunity for local development under tighter US sanctions
Yangtze Memory Technologies Corp (YMTC), China’s leading memory chipmaker, has denied it is seeking a back-door listing to take advantage of the frenzy in the country’s chip-related stocks amid tighter US tech sanctions.
Considered China’s best chance to compete in advanced flash memory chips against global leaders Samsung Electronics and SK Hynix, YMTC issued a statement on Sunday saying it “never had any intention of pursuing a back door- listing”. The statement was in response to earlier local media reports.
The denial comes as Chinese semiconductor companies have become the new darlings for domestic investors, who view tighter US export restrictions on the country’s chip industry as an impetus for more local development. Listed companies with potential business ties or equity relationships with leading players such as YMTC and Huawei Technologies are often sought-after stocks among China’s retail investors.
YMTC, based in Wuhan, the capital city of Hubei province, also denied it had any ties to Shenzhen-listed Mason Technology, named as the possible back-door company in the rumours, whose ultimate controlling entity is the Hubei State-owned Assets Supervision and Administration Commission. A subsidiary of Mason Technology, Yangtze Mason Semiconductor, engages in the memory chip business, according to its website.
After the YMTC denial, Mason Technology’s shares tumbled by the limit of 10 per cent to 14.04 yuan (US$1.93) on Monday.
