Shares of CXMT, China’s largest memory chipmaker, shot skyward Monday as they began trading in Shanghai in mainland China’s biggest initial public stock offering in recent years.

CXMT’s shares surged 466% in their first day of trading. The company has become the most valuable one listed on a mainland Chinese exchange, with an estimated market capitalization of about 3.3 trillion yuan (more than $487 billion).

But that’s still smaller than those of South Korean and American memory chipmakers like Samsung Electronics, SK Hynix and Micron Technology.

CXMT, or ChangXin Memory Technologies, is among many chipmakers that have profited mightily from the boom in artificial intelligence. Its business is thriving as China pushes for greater self-sufficiency in leading-edge technologies while contending with limited access to advanced chipmaking machines due to American-led restrictions.

The company raised at least $8.6 billion with the offering, priced at 8.66 yuan ($1.3) per share, in its listing on the Shanghai Stock Exchange’s Nasdaq-like STAR market, also known as the Science and Technology Innovation Board.

It was mainland China’s second largest IPO after the $22.1 billion share offering of Agricultural Bank of China in Shanghai and Hong Kong in 2010.

Founded in 2016 in the eastern city of Hefei, CXMT is one of the world’s largest makers of DRAM, or “dynamic random access” memory chips, a kind of semiconductor used in everything from AI servers to autos and consumer electronics like smartphones and personal computers.

“CXMT plays a critical role in China’s AI push, particularly in the face of U.S. export controls,” said Kyle Chan, a fellow at the Brookings Institution and an expert in China’s technology policies.

U.S. restrictions have also barred China from importing powerful HBM, or high-bandwidth memory chips – a type of DRAM chip.

Trade curbs key challenge

The company’s revenue surged to 50.8 billion yuan ($7.5 billion) on jumping demand from the rapid rise of AI in the first three months of 2026, a more than 700% rise year-over-year.

Soaring use of AI has led to a global memory chip shortage, driving up prices for some computers and smartphones. One big question, Chan said, is whether CXMT could help with the broader shortage.

CXMT is seen as China’s best shot at developing its own cutting-edge HBM chips to power Chinese AI models, Chan said. But it also faces many challenges, including supply chain bottlenecks in scaling up manufacturing capacity, since its access to the world’s best chipmaking tools is highly restricted, forcing it to depend on Chinese equipment makers.

According to Counterpoint Research, a technology research firm, CXMT was the world’s fourth biggest DRAM memory chipmaker in 2025 by shipments, taking up roughly 8% of the global market. Samsung Electronics accounted for 36%, SK Hynix 29% and Micron about 24%.

In the first three months of this year, CXMT accounted for approximately 9% of global shipments. By 2028, its market share is forecast by Counterpoint Research to reach about 11%. But the research firm estimated CXMT will likely need at least a 15% global market share to be competitive in the long term.

“Trade restrictions on tools are remaining as the key challenge for CXMT,” said MS Hwang, a research director at Counterpoint who specializes in memory semiconductors.

Some U.S. lawmakers have also recently called for President Donald Trump’s administration to block American companies from buying CXMT’s memory chips over national and economic security concerns.

CXMT is one of many Chinese companies the Pentagon claims have links to the Chinese military. Beijing has rejected such designations in most cases.

CXMT’s public share offering followed a $26.5 billion IPO by South Korea’s SK Hynix on the Nasdaq earlier this month.

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Shipping traffic through the Bab el-Mandeb dropped on Sunday after Yemeni Houthis attacked Saudi oil facilities along the Red Sea coast, while transit through the Strait of Hormuz remained low over the weekend, according to data on Monday.

Eleven ​commodity vessels passed through the Bab el-Mandeb Strait on Sunday, the ​lowest ⁠level in months, the shipping data from Kpler showed.

Red Sea traffic has been disrupted off the coast of Yemen since last week by the Tehran-aligned Houthis, who want to blockade Saudi exports, expanding the U.S.-Iran conflict that has already choked oil supply through the Strait of Hormuz.

The shipping disruption caused prices of physical crude cargoes in the Middle East, Europe and Africa to jump to two-month highs last week.

Seven of the vessels that passed through Bab el-Mandeb were oil tankers, with three of them entering the Red Sea. Two of them are very large crude carriers (VLCCs) heading to the port of Yanbu to load Saudi crude, while the third is ⁠a Russian-linked ship, the data showed.

The four vessels that exited the Red Sea on Sunday included the Hong Kong-flagged VLCC New Explorer carrying 2 million barrels of Saudi and Emirati crude for eastern China’s Ningbo port, a tanker carrying 1 million barrels of Russian crude for China and a tanker with about 750,000 barrels of Saudi crude onboard for Pakistan, the data showed.

Another Hong Kong-flagged VLCC, New Pearl, carrying 2 million barrels of Saudi crude is exiting the Red Sea via Bab el-Mandeb strait for eastern China’s Zhoushan port, the fourth ⁠Chinese supertanker to leave since the Houthis declared a naval blockade.

Associated Maritime Hong Kong, the manager for New Explorer and New Pearl, did not immediately respond to a request for comment outside office hours.

Houthi military spokesperson Yahya ​Saree said the group struck sites belonging to Saudi state oil company Aramco in the cities of ​Jizan and Yanbu on Saturday.

Hormuz

Fewer than 10 commodity vessels passed through the Strait of Hormuz daily over the weekend even though the U.S. and Iran have paused strikes ⁠in the ‌Middle East, ‌data from Kpler showed.

Seven vessels transited on Sunday, including three Iranian-linked ⁠oil products tankers that exited the Strait.

On Saturday, there were only three vessels that passed through with their transponders switched off. These include a VLCC heading ​to Qatar to load oil, ⁠a liquefied petroleum gas tanker going to the Ruwais port in the ⁠United Arab Emirates (UAE) to load a cargo and a tanker carrying Qatari naphtha that was heading ⁠to Japan, the ​data showed.

On Friday, seven vessels passed, mostly exiting the Gulf, including two VLCCs carrying crude from Iraq and the UAE and a tanker carrying fuel oil.

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Indonesia’s central bank governor ​stepped down on Monday, in a surprise move that deepens uncertainty as the country grapples with a weakening currency and other economic woes brought on by the Middle East war.

President Prabowo Subianto has accepted the resignation of Perry Warjiyo, who had served as Bank Indonesia’s (BI) governor since 2018, State Secretary Prasetyo Hadi told reporters in Jakarta.

Warjiyo, whose second term was meant to expire in 2028, cited unspecified personal reasons for the surprise resignation, which he tendered on Saturday.

The bank’s senior deputy governor, Destry Damayanti, has been appointed interim governor, said Hadi.

The rupiah weakened as much as 0.36% to 18,000 to the U.S. dollar following the announcement, while the main stock index flipped between gains and losses in choppy trade.

The stock market and currency remained “quite stable” in the hours after the government announced Warjiyo’s resignation, Bank Central Asia chief economist David Sumual told Agence France-Presse (AFP).

But the move “may cast further policy uncertainty, which may not translate well to the rupiah and the economy in general.”

The rupiah has taken a battering from surging energy costs, shedding about 7% since the Middle East conflict erupted in February to become Asia’s worst-performing currency, according to financial outlet Bloomberg News.

BI surprised markets last week by ⁠keeping policy ​rates unchanged, instead offering new incentives to attract foreign capital inflows aimed at supporting the rupiah.

The bank has lifted its key interest rate by 100 basis points this year to 5.75% in an effort to shore up the rupiah.

Deni Friawan, a researcher at the Jakarta-based Center for Strategic and International Studies, said Warjiyo’s surprise resignation could spook investors.

“Markets dislike surprises,” he told AFP.

“When a central bank governor steps down unexpectedly, investors naturally question the future direction of monetary policy, inflation control, and exchange rate management.”

Replacement closely watched

Warjiyo, who started his career at BI in 1984, was first appointed as governor in 2018. He was reappointed for a second five-year term by Subianto’s predecessor in ​2023.

Analysts say the choice of Warjiyo’s permanent replacement will be closely watched.

“Given the current environment of heightened uncertainty, policymaking experience and credibility should be key in picking a successor,” said Sumual.

To Friawan, “if the appointment is perceived as politically driven, investors may begin to question the institution’s credibility. And that is a far more serious risk than the resignation alone.”

The appointment of a new governor would involve both the president and the parliament. The president will submit his nomination to the parliament for a “fit and proper test” before the parliament gives its approval.

“The president has not yet proposed the nomination,” Hadi said.

The government urged market participants to remain calm during the transition period. The appointment process would be carried out transparently and accountably and would not disrupt monetary ​policy or economic stability, it said in ​a statement.

Damayanti, who was a commissioner at the ⁠Indonesia Deposit Insurance Corp. and previously the chief economist at Bank Mandiri before joining BI’s board, said the central bank “will always ensure the continuity of its duties and authorities” to maintain the stability of the rupiah and financial system to achieve an economic environment that is ​conducive for growth.

Rating agencies Moody’s and Fitch cited concerns regarding changes in Bank Indonesia’s mandate as among key drivers of their credit rating ​outlook cut to “negative” earlier ⁠this year.

However, rival rating agency S&P this month kept its Indonesia rating outlook “stable” and said BI has had a level of operational independence since July 2005 that was roughly in line with regional peers, and it did not expect BI’s changing mandate to drastically affect such independence. All three rated Indonesia’s debt at the second-to-lowest investment grade.

Southeast Asia’s biggest economy is a net oil importer, but the government has insisted on leaving the price of heavily subsidized fuel unchanged despite mounting pressure on the public purse.

Consumer prices rose 3.34% in June, and growing economic strain triggered student protests demanding the government stop excessive spending, including on its billion-dollar free-meals scheme, which has since been cut back.

Critics also hit out at a government decision to raise the non-subsidized fuel price by a third.

Indonesia’s stock market has lost about a third of its value in 2026, and its stock exchange has been rattled by the threat of a downgrade by stock market compiler MSCI.

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Global shares were mostly higher Monday and oil prices slipped nearly 7% as the U.S. and Iran paused strikes over the weekend following two weeks of attacks while discussing a possible return to negotiations on an interim cease-fire deal.

The Pentagon did not respond to questions about the pause in attacks on Iranian coastal areas and infrastructure after nearly two weeks of escalating fighting sparked by Iran’s firing at ships trying to transit the Strait of Hormuz.

But markets reacted with relief. U.S. futures surged early Monday and the price of a barrel of Brent crude, the international standard, dropped 6.8% to $85.49.

U.S. benchmark crude dropped 7% to $83.06 per barrel.

“Oil’s sharp retreat at the Monday open did more than knock a few dollars off the barrel. It loosened the geopolitical knot that had been tightening around equities, currencies, bonds and central banks for most of July,” Stephen Innes of SPI Asset Management said in a commentary.

Brent had reached $100 per barrel as the conflict, ​which reduced oil shipments via the Strait of Hormuz, spilled over to the Red Sea, hindering exports from the world’s top ​exporter, Saudi Arabia, via the Bab el-Mandeb Strait to Asia.

Fewer than 10 commodity vessels passed through the Strait of Hormuz daily during the weekend, shipping data from Kpler showed.

“Any rebound in flows through the Strait of Hormuz is likely to prove slow and partial, as many shippers remain wary and will want greater confidence in their safety before they bring ​more empty ships into the ​Strait,” MST Marquee analyst ⁠Saul Kavonic said.

In addition, ship traffic through the Bab el-Mandeb Strait fell on Sunday after Yemeni Houthis attacked Saudi oil installations along the Red Sea coast, although a third Chinese supertanker ​exited via the Bab el-Mandeb Strait. Societe Generale analysts estimate that each month without a ​resolution in the ⁠Red Sea would add at least $10 a barrel to the oil price.

Some analysts expect markets will remain supported if crude supplies continue to be disrupted by ongoing shipping risks in the Middle East and Russia’s war on Ukraine.

“As the Middle East conflict ⁠widened ​to the Red Sea and Ukrainian drones struck Russian ships and refineries… ​sustained (supply) disruption would likely keep oil prices elevated and continue to pose upside risks to global inflation,” UOB analysts said in a note.

Ukraine said it ​hit several Russian oil sites over the weekend.

Chinese chipmaker CXMT soars

Meanwhile, shares in Chinese memory chipmaker CXMT soared 466% on Monday as they began trading on Shanghai’s technology board. The company jumped to become China’s most valuable listed company with an estimated market capitalization of 3.3 trillion yuan (nearly $490 billion).

In early European trading, Germany’s DAX gained 1.6% to 25,497,42 and the CAC 40 in Paris was up 0.8% at 8,436.94. Britain’s FTSE 100 rose 0.5% to 10,784.00.

The futures for the S&P 500 and Dow Jones Industrial Average were up 1%.

In Asian trading, Japan’s benchmark Nikkei 225 rose 0.5% to 64,931.19, while the Kospi in South Korea advanced 1% to 6,755.75.

Hong Kong’s Hang Seng climbed 1% to 25,207.18, while the Shanghai Composite index gained 1.2% to 3,858.25.

In Australia, the S&P/ASX 200 surged 1.4% to 8,894.00.

Taiwan’s Taiex slipped 0.1% and the Sensex in India added 1.1%.

On Friday, the S&P 500 barely budged, picking up less than 0.1% and notching its second straight losing week for the first time since March.

The Dow industrials rose 0.5%. The Nasdaq composite index slipped 0.6%, weighed down by sharp losses for heavyweights like Micron Technology, which fell 7%, and Broadcom, which lost 2.7%.

Recent surges in energy prices and fresh tariffs announced last week by the administration of U.S. President Donald Trump could result in hotter inflation, which has been squeezing consumers and looming over the Federal Reserve’s (Fed) interest rate policy.

The Fed meets this week, though rising inflation has dashed hopes for an interest rate cut anytime soon. Wall Street has been leaning toward a potential rate hike to tamp down higher prices.

Higher energy costs are taking up a bigger share of household budgets, which have shifted toward more basic needs, like gasoline.

In the U.S., a gallon of gasoline costs $4.11, according to AAA. That is still lower than this spring as the conflict in Iran expanded, but almost a dollar higher than last year at this time.

“Oil is the fastest-moving tax in the global economy,” Innes said.

When crude rises sharply, consumers feel it at the fuel pump, airlines and transport companies feel it in their operating costs, manufacturers feel it in their logistics, and central banks begin worrying that the initial supply shock will spill over into broader inflation expectations,” he noted.

Meanwhile, corporate earnings reports are focusing attention on the sustainability of broader profits from a boom in spending on artificial intelligence.

Tech giants like Alphabet and Nvidia have been spending heavily to expand AI capacity and investors increasingly are questioning whether they will generate profits to justify the massive stock values that have pushed markets higher throughout the year.

In other dealings early Monday, the U.S. dollar slipped to 163.56 Japanese yen from 163.64 yen. The euro rose to $1.1399 from $1.1398.

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U.N. chief Antonio Guterres called on Sunday for an immediate removal of all sanctions imposed on Syria during the era of former ruler Bashar Assad, as he concluded a two-day visit to the country.

“I welcome steps that have eased sanctions and the opening of new possibilities for economic recovery, but all these sanctions must be removed immediately,” Guterres told a news conference in Damascus.

Syria’s new authorities, who took power in December 2024, are trying to turn the page after more than 13 years of war, and to reboot the economy and rebuild infrastructure and institutions.

Western countries, including the U.S., have begun lifting economic sanctions on Syria. But investors have remained cautious, as the World Bank has estimated the country’s post-war reconstruction could cost $216 billion.

“The United Nations stands with the people of Syria at this pivotal moment. And I came carrying the strongest possible appeal to the international community, an appeal to spare no effort to support the Syrian people and to support the Syrian government,” Guterres said.

“Syria today is at a crossroads,” he added.

Guterres is the first U.N. chief to visit Syria since his predecessor Ban Ki-moon in 2009, two years before the start of Syria’s war, which killed half a million people.

“Syria needs investment in its people, its economy and its institutions. Syria needs support to restore essential services, rebuild infrastructure, revive livelihoods,” he said.

It also needs help “for the safe, voluntary and dignified return of refugees and internally displaced people,” he added.

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The potential breakup of the major German battery manufacturer Varta is seen as a problem for the entire industry in the country, according to the battery expert Dirk Uwe Sauer.

A creditor group led by Deutsche Bank and the financial investors RBC BlueBay, Blantyre and Whitebox announced earlier this week that it intends to spin off the well-known household battery business from the Varta Group, blaming the company’s strained financial situation.

On Friday, Varta confirmed it had filed for preliminary insolvency under self-administration, in a bid to secure its economic future.

“There are only a few companies like Varta in Germany,” said Sauer, a professor at RWTH Aachen University.

“If the company’s profit center is carved out, the question is how future innovation will be financed,” he said.

Varta said the insolvency filing was intended to enable the sustainable continuation of its business operations.

“Technologically speaking, what Varta does is very good,” said Sauer. Ultimately, however, it all comes down to price.

That, he argued, reflects a broader challenge facing Germany’s battery industry.

“We don’t have large-scale manufacturing,” Sauer said. By contrast, China has built up massive production capacity, triggering intense price competition.

“We’ve known for a long time that we’re heading into this dilemma of dependence on China,” he said.

Sauer nevertheless sees promise in Varta’s work on sodium-ion batteries, an emerging technology that could help Europe diversify its battery supply chain.

“Sodium-ion batteries represent a real opportunity for Europe to reduce its dependence on China, because the raw materials required for them are more readily available on the global market,” said Sauer.

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