A Classic Investment: How PICC Achieved a 20x+ Return
At PICC's recent interim results briefing, Group Vice President Cai Zhiwei highlighted a remarkable investment success story. He disclosed that PICC made a strategic investment in ChangXin Memory Technologies (CXMT) back in 2021.
Cai provided a concrete figure: based on CXMT's closing share price on its debut day (July 27th) on the Shanghai STAR Market, PICC's investment has generated a return exceeding twenty times the original outlay. This performance stands out significantly in the current investment climate.
The Triumph of Long-Termism: Beyond Financial Gains
When discussing this achievement, Cai Zhiwei looked beyond mere financial metrics. He emphasized PICC's consistent philosophy of long-term investing. This approach centers on aligning capital allocation with national strategic economic priorities, concretely implemented through deepening efforts in five key financial sectors: technology finance, green finance, inclusive finance, pension finance, and digital finance.
The investment in CXMT exemplifies a successful execution of this philosophy within technology finance. As a leading integrated DRAM design and manufacturer in China, CXMT's development is crucial for the security and self-reliance of the domestic semiconductor industry. PICC's early-stage support not only yielded substantial capital returns but also tangibly bolstered core technological breakthroughs in a critical sector.
Looking Ahead: A Pipeline of High-Potential Projects
Past success builds confidence and a framework for future deployment. Cai sent a clear message to the market: PICC's investment drive continues unabated.
He explicitly stated that the company has established and fortified its project pipeline, which now contains a batch of high-quality ventures that have undergone rigorous screening. These projects span strategic emerging industries and future sectors that align with PICC's focus areas. While specific details remain confidential for commercial reasons, Cai expressed strong confidence that the quality and strategic positioning of these projects position the company well to deliver solid investment returns in the future.
This announcement suggests PICC is working to transform the CXMT success from a singular case study into a replicable, sustainable investment capability. By building a systematic process for project sourcing, evaluation, and pipeline management, the company aims to identify more high-growth opportunities, continuously create value for shareholders, and fulfill the fundamental mission of finance serving the real economy.