Hefei’s CXMT jackpot fuels China local governments’ tech bets

Hefei has transformed itself into an economic powerhouse by using investment funds to lure tech companies like CXMT, which is set to make a splash on Shanghai's bourse next week. (Nikkei montage/Source photos by Wataru Suzuki and Getty Images) Investment model raises risks of overinvestment in Beijing's priority sectors HEFEI, China — The headquarters of Chinese memory chip maker CXMT is more than 1,000 kilometers away from the country's tech hubs in Beijing or Shenzhen. The sprawling campus, surrounded by walls with electrified fencing for security, sits in the eastern city of Hefei, which is poised to reap hefty rewards from its bet on the company.

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