Chinese Tape Maker Crown New Materials Soars as Much as 787% in Shenzhen Stock Debut

This article is for general information only and is not financial or investment advice.

A little-known Chinese maker of adhesive tape and protective films became one of the most talked-about stock debuts of the year on Tuesday, Nov. 3. Shares of Crown New Materials Technology rose as much as 787% on their first day of trading on the Shenzhen Stock Exchange, according to reports citing exchange data and Forbes.

The stock climbed from its IPO price of 16.98 yuan to as high as 150.58 yuan, setting off two trading halts during the session. It gave back much of that gain and closed at 84.55 yuan, still up nearly 398% on the day, Yahoo Finance reported.

What is Crown New Materials?

Crown New Materials Technology was founded in 2000 and makes industrial adhesives and protective films, according to The Economic Times, citing Forbes. Its products are used in supply chains serving companies such as Apple and Tesla, and reports also name Chinese automaker BYD among the customers it serves.

The Economic Times reported that the company competes internationally with Japan’s Nitto Denko and U.S.-based 3M. At home, it faces Shanghai-listed Smith Adhesive New Material and Shenzhen-listed Jiangsu Sidike New Materials Science.

In late October, the company raised about 956 million yuan (around $144 million) by selling 56.3 million shares in its IPO, The Economic Times reported, citing Forbes. It plans to use the money in part to build a research center in China.

Former teacher and sister become billionaires on paper

The rally made Crown’s chairman and CEO, Mai Michael, and his sister and vice chairman, Mai Huixia, billionaires on paper. Forbes estimated their fortunes at about $2.5 billion and $2 billion, respectively, according to Yahoo Finance and The Economic Times.

Mai Michael, 62, is an Australian citizen. He taught at an elementary school in Zhongshan before going into the materials business in 1985, The Economic Times reported, where he oversaw an adhesive tape maker before building Crown.

Why did the stock soar so much?

Sources point to a few factors:

• A tiny float. Only 9.4% of Crown’s shares were available to trade, Yahoo Finance reported, leaving investors competing for limited supply.
• Conservative IPO pricing and strong demand. Shen Meng, managing director of Beijing investment bank Chanson & Co., told Forbes these factors help explain the gains, per Yahoo Finance.
• China’s IPO frenzy. New listings in Shanghai and Shenzhen gained an average of 234% on their first day of trading in September, according to Guotai Haitong Securities, as cited by Yahoo Finance.

The company itself urged caution before the debut, warning investors against “blindly following the crowd” when speculating on newly listed shares. Its fundamentals are mixed. Revenue rose 11.75% in the first nine months of 2026, but net profit fell 7.89%, according to a company filing cited by Yahoo Finance.

Beijing moves to slow new IPOs

The debut also came as Chinese regulators reportedly moved to cool new listings. China’s securities regulator told investment banks on Monday to stop submitting new IPO applications, while letting those already in the pipeline proceed, according to The Wall Street Journal, as cited by Yahoo Finance. The aim is to support prices of existing stocks during a slump. The CSI 300 fell 8.5% in October, and the tech-heavy STAR 50 dropped about 40% in under four months, Reuters reported.

FAQ