New Delhi, July 28 -- CXMT, China's leading DRAM chipmaker, made a blockbuster debut on the Shanghai Stock Exchange on Monday. Its shares surged 466%, pushing its market value to 3.28 trillion yuan ($484.6 billion) and making it mainland China's most valuable onshore-listed company. The development comes at a crucial time as CXMT faces pressure from Washington after being added to the Pentagon's blacklist over its alleged ties to China's military and state apparatus. Now the bigger question is: Could US restrictions backfire by strengthening CXMT and creating a more formidable Chinese chip rival?

"Yes, definitely," says Paresh N. Bhagat, MD & Chairperson of Mangal Keshav Financial Services, adding, "but the effect operates at two differe...