Why is CXMT stock rallying today?

CXMT stock rose 2.3% to 39.68 CNY after Chairman Zhu Yiming submitted a formal proposal early this morning to sharply increase the company’s share repurchase program, lifting the buyback ceiling from RMB 2 billion to RMB 50 billion — a 25-fold expansion.

The announcement was interpreted by investors as a strong vote of confidence in the company’s valuation, particularly after the stock had slid 7% in the prior session to close at 38.8 CNY — near its 52-week low of 38.11 CNY.

The buyback proposal carries added weight given CXMT’s recent financial performance. The company reported third-quarter revenue of RMB 118.7 billion, representing year-over-year growth of more than 600%, alongside a net profit attributable to shareholders of RMB 54.4 billion — a sharp reversal from a loss in the same period a year earlier.

Leveraged investors have also been accumulating the stock, with margin-funded net buying of approximately RMB 272 million in the past week, signaling that institutional and retail traders alike are treating the current price level as attractive. Separately, CXMT has disclosed that it is in early-stage verification of its next-generation 4F² cell architecture, a technology milestone that underpins the longer-term growth narrative.

On the broader market front, Chinese A-share indices opened mixed today, with continued losses in broader tech and chipmaking stocks.