The Shanghai Stock Exchange has issued its first formal regulatory inquiries to CCSH Corp., the state-backed parent of Yangtze Memory Technologies (YMTC), starting the official review of a planned 33.3 billion yuan ($4.9 billion) IPO. The offering is currently the largest in China’s listing pipeline and is expected to list on the STAR Market in 2027. The exchange accepted CCSH’s application roughly two weeks after the company filed its prospectus on August 21, 2026. YMTC itself was placed on the US Commerce Department’s Entity List in December 2022, restricting access to US-origin chipmaking equipment and technology. Its progress has nevertheless been supported by Xtacking 4.0, a 3D NAND architecture that fabricates memory cells and peripheral logic on separate wafers before joining them through copper-to-copper hybrid bonding. The design lets YMTC use domestically available equipment for the peripheral wafer while using cell-array equipment below US export-control thresholds. The company is producing 267-layer TLC NAND with 1 terabit per chip and a density of 12.66 gigabits per square millimeter. TechInsights says the technology is narrowing the gap with Micron’s 276-layer product, although Samsung and Kioxia/Western Digital have 286-layer products. YMTC is developing NAND exceeding 300 layers. CCSH reported first-quarter 2026 revenue of about 47 billion yuan ($7.0 billion), nearly five times the year-earlier figure and above its total 2024 revenue. Net profit attributable to shareholders reached 33.38 billion yuan ($5.0 billion), more than double its full-year 2025 profit of 14.21 billion yuan ($2.1 billion). Average NAND selling prices were 173% above the 2025 average, gross margin rose to 76.8% from 35.3%, and YMTC’s two Wuhan factories, with combined output of about 200,000 wafers per month, operated near full capacity as cloud providers built AI data centers. Counterpoint’s Q2 2026 tracker put YMTC at about 14% of global NAND flash bit shipments, narrowly ahead of Kioxia and behind Samsung at 25% and SK Hynix, including Solidigm, at 22%. YMTC still ranked fifth by revenue because its output is concentrated in consumer products rather than enterprise SSDs, which command higher prices and accounted for 48% of global NAND bits shipped in Q2, up from 26% a year earlier. The IPO allocates 20.8 billion yuan ($3.1 billion) to production-line upgrades and 12.2 billion yuan ($1.8 billion) to research and development, supporting a shift toward enterprise storage. Buyers also face legal and security considerations. China’s National Intelligence Law, Cybersecurity Law and Data Security Law create obligations for Chinese companies to support government intelligence requests and provide access to data under specified conditions. The US Department of Homeland Security has said Chinese companies operating under this framework must cooperate with such requests. No independent third-party security audit of YMTC enterprise chips had been published as of September 4, 2026. YMTC remains on the Pentagon’s Section 1260H list of Chinese military companies, after a February 2026 update suggesting its removal, alongside CXMT, was withdrawn without explanation. CCSH’s prospectus does not explicitly address that designation but cites geopolitical tensions, export controls and supply-chain disruption as risks. YMTC has sued to be removed, with no ruling issued as of publication. The IPO follows ChangXin Memory Technologies’ July 2026 STAR Market debut, which raised about 57.92 billion yuan ($8.6 billion) and saw its shares surge approximately 471% on the first trading day. CCSH’s planned raise exceeds CXMT’s initial 29.5 billion-yuan ($4.4 billion) target, and analysts expect its post-IPO valuation to be benchmarked against CXMT’s market capitalization. CCSH must now respond to the exchange’s questions, with further inquiry rounds typical and the final approval timeline uncertain.