Chinese chip investors will prefer a cooler STAR

Hua Hong Grace Semiconductor

09/05/2023 02:56

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Robyn Mak
       HONG KONG, May 9 (Reuters Breakingviews) - Nexchip, two
decades behind industry leader TSMC, had a muted IPO debut in
Shanghai after pricing shares conservatively. That’s a far cry
from the market’s famous triple-digit first-day pops. But it’s a
welcome sign STAR is becoming more rational for companies and
traders alike.
           
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    CONTEXT NEWS
    Nexchip Semiconductor shares closed largely flat from their
initial public offering price of 19.86 yuan on its Shanghai STAR
market debut on May 5. The Chinese contract chipmaker raised 10
billion yuan ($1.4 billion) in what is the biggest A-share
listing so far this year.
    Separately, Hong Kong-listed Hua Hong Semiconductor is
planning to raise 18 billion yuan on the STAR market as early as
this year, IFR reports. It filed the A-share listing last
November and has since completed two rounds of inquiries with
the regulator.

 (Editing by Pete Sweeney, Pranav Kiran and Thomas Shum)
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