(ECNS) -- Hefei, a city in central China, is reaping the rewards of more than a decade of patient investment in strategic industries, as memory chipmaker CXMT surged 12.66% Wednesday to a market capitalization of 3.5 trillion yuan ($490 billion), becoming the most valuable company on China's A‑share market.
State‑owned capital in Hefei holds more than 30% of CXMT, generating gains exceeding 1 trillion yuan from sustained support without seeking quick returns, according to Aiqicha, a corporate credit query tool. The city's early bets on high‑tech manufacturing and emerging industries have become key drivers of growth.
According to Hefei Municipal Bureau of Statistics, the city's GDP reached 707.3 billion yuan in the first half of 2026, up 6.8% year‑on‑year, outpacing the national rate of 4.7%.
Output from computer and communications equipment manufacturing jumped 92.5%, while automobile manufacturing rose 16%. High‑tech manufacturing now accounts for 41.9% of industrial output, up 12.3 percentage points from a year earlier.
The city's transformation traces back to landmark investments: BOE Technology in 2008, CXMT in 2016, and crucial financing for EV maker NIO in 2020.
Analysts say Hefei's success reflects its ability to identify emerging industries early and commit patient capital.
Today, Hefei has become one of China's "double-trillion" cities, with both annual GDP exceeding 1 trillion yuan and a permanent population of more than 10 million, according to data from Hefei Municipal Bureau of Statistics.
As cities across China seek to foster new quality productive forces, Hefei's experience has emerged as a notable example of how long-term industrial planning and technological innovation can reshape a regional economy.
Officials say CXMT's rise may be only the beginning, as the city continues investing in advanced manufacturing and technology.
(By Gong Weiwei)
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