Shares in China’s biggest memory chip maker have surged by more than 470% as they made their debut on the Shanghai Stock Exchange’s tech-heavy STAR Market.

The surge has pushed CXMT’s stock market valuation to around 3.3 trillion yuan ($487.3bn; £364.9bn), making it the most valuable listed company in mainland China.

The spectacular debut comes despite a sharp selloff in technology stocks around the world this month.

CXMT manufactures dynamic random-access memory (Dram) chips that power artificial intelligence (AI) data centres, mobile phones, PCs, tablets and other devices.

The firm, which was founded in 2016 by Chairman Zhu Yiming, is headquartered in Hefei, Anhui Province in eastern China.

The company has said it plans to use most of the proceeds from the initial public offering (IPO) to boost production of memory chips and carry out more research and developments.

The strong performance of its IPO will offer some comfort to Chinese financial officials, who have been rolling out measures to help curb a stock market slump that wiped out more than $1.5tn in recent weeks.

South Korean tech giants Samsung Electronics and SK Hynix and US-based Micron dominate the Dram market, with the three companies accounting for around 90% of global production.

Earlier this month, SK Hynix raised $26.5bn (£19.8bn) in its New York share offering, marking the largest ever listing by a foreign firm in the US.

The company, a key supplier to AI chip giant Nvidia, said it had sold 177.9 million American depositary shares for $149 each.

The shares surged as much as 17% on Friday in their first day of trading on the Nasdaq but have since given up some of that gain.

SK Hynix saw its market value top $1tn in its home country in May, lifted by the boom in demand for AI chips.

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Australia’s benchmark share index closed lower Friday, reversing gains from earlier in the week as a fresh round of U.S. tariff threats and a sharp selloff on Wall Street weighed on sentiment, capping a third consecutive weekly decline for the local market.

A rough end to the trading week

The S&P/ASX 200 fell 66.70 points, or 0.75%, to close at 8,772.30 on Friday, giving back a string of gains posted earlier in the week. Weakness was broad-based, spreading across the technology, consumer durables, non-energy minerals and healthcare sectors. Technology names led the losses, with Xero falling 4.5%, WiseTech Global dropping 4.6%, and Megaport sliding 3.3%. Gold miners also retreated, with Northern Star Resources down 3.9% and Evolution Mining off 2.4%. Australia’s four major banks were a rare bright spot, rising between 1% and 1.5% as investors rotated toward more defensive, income-generating stocks.

For the week overall, the index shed roughly 0.3%, marking its third consecutive weekly decline even as trading earlier in the week had briefly pushed the market toward stronger gains.

Trump’s tariff announcement rattles sentiment

The pullback came after the Trump administration said it would impose new tariffs on 60 trading partners, a move that unsettled global markets and flowed through to Australian trading given the country’s close economic and trade ties with both the United States and Asia-Pacific export markets. The announcement contributed to a sharp overnight selloff on Wall Street, which set a negative tone for Friday’s session in Sydney. The Dow Jones Industrial Average fell 0.97% overnight, while the tech-heavy Nasdaq Composite dropped a steeper 2.15%, dragging down sentiment across Asia-Pacific markets the following morning.

Strong jobs data complicates the rate outlook

Domestically, robust employment figures added another layer of complexity to the week’s trading. Australia added 76,000 jobs in June, far exceeding consensus expectations of around 15,000, while the unemployment rate held steady at 4.4%. The stronger-than-expected labor market data initially helped push the index higher earlier in the week, with the ASX 200 climbing as much as 1.1% intraday on Thursday to touch 8,926.30, its best level since mid-June, before those gains were pared back as investors recalibrated expectations for Reserve Bank of Australia policy.

The strong jobs report lifted the odds of an August RBA rate increase to roughly 36%, with markets now largely pricing in a move to 4.6% by the end of the year following three rate hikes already delivered in 2026. That shift added pressure to rate-sensitive sectors, including parts of the financial sector, even as the broader market weighed the implications of a still-resilient labor market against the risk of further tightening.

With Australia’s inflation data for June and the second quarter due out the following week, investors remained cautious about the potential for persistent price pressures to further complicate the central bank’s policy path heading into the back half of the year.

Commodities offer a partial offset

Mining and materials stocks provided some support during the week, helped by strength in key commodity prices. Gold traded around $4,116 an ounce, while iron ore futures climbed 1.7% to $98.70 in Singapore, lifting major miners including BHP Group, which rose 1.5% to $60.63, Fortescue, up 1% to $18.76, and Northern Star Resources, up 2% to $20.74 during Thursday’s session before the sector cooled into Friday’s close.

Energy stocks also found support mid-week after oil prices rose 2.3% to $96.24 a barrel, following reports that Iran-backed Houthi militants had attacked two Saudi Arabian oil tankers in the Red Sea, adding a geopolitical risk premium to crude markets that flowed through to Australian energy shares.

A market still near record territory despite the pullback

Even with the week’s decline, the ASX 200 remains within striking distance of the record highs it set earlier this year. The index touched an all-time intraday high of 9,198.6 points in February before pulling back toward the high-8,000s range by mid-year. Over its more than 25-year history, the benchmark index has delivered a long-term annualized total return of roughly 8.2%, including dividends, making short-term pullbacks like the one seen this week a routine part of its longer-term trajectory rather than a departure from it.

Seasonally, July has historically been one of the stronger months for the ASX 200, with the index averaging a gain of roughly 2.13% for the month since 1980 and finishing higher in 72% of those years. Recent Julys in particular have performed well, with the index closing higher in 11 of the last 12 years during the month, making this year’s choppier trading somewhat of an outlier relative to the seasonal pattern.

What investors are watching next

With inflation data for June and the second quarter due the following week, market participants are likely to remain focused on how that report shapes expectations for the Reserve Bank of Australia’s next policy move. The interplay between a resilient labor market, persistent inflation risk, and the fallout from the latest round of U.S. tariff actions is expected to remain the dominant theme driving Australian equity markets in the near term, alongside ongoing volatility in global commodity prices and continued swings in U.S. technology shares, which have had an outsized influence on sentiment in Sydney trading throughout the year.