China’s ChangXin Memory Technologies (CXMT) has become the country’s most valuable listed company by market capitalisation after its shares surged more than 500% in their Shanghai debut on Monday.

The surge pushed CXMT’s market value to around 3.3 trillion yuan ($487 billion; £365 billion), making it the most valuable listed company in mainland China.

The rally saw CXMT surpass the Industrial and Commercial Bank of China (ICBC), which previously held the top spot by market value.

The debut also outpaced the more than 100% first-day gain recorded by China Resources New Energy following its $3.6 billion initial public offering earlier this month.

The company has said it plans to use most of the proceeds from the initial public offering (IPO) to boost memory chip production and fund research and development.

“The gap is still considerable now, but the big question is how soon CXMT can close the gap with this upcoming capital influx,” MS Hwang, research director at Counterpoint, said.

Ellie Wong, an analyst at technology research firm TrendForce, said the price increases were expected to continue until the end of 2027.

“Amid persistent supply shortages, many customers are seeking to diversify their memory supplier base, which should significantly benefit CXMT and create more business opportunities,” she said.