From launchpads to listings: China's new space players reach for capital

by MA Yueran

China's private space sector is moving into the capital markets. At least eight commercial aerospace firms — five focused on rockets — are planning initial public offerings, as Beijing accelerates its drive in advanced manufacturing and investors chase the next frontier.

Galactic Energy, CAS Space, LandSpace, Space Pioneer, and iSPACE are leading the rocket segment, while Yixin Aerospace, MinoSpace, and Adaspace Technology specialize in satellites.

Galactic Energy has completed 20 successful missions of its solid-fuel Ceres-1 rocket, carrying 85 satellites for 27 clients. The company has built a sustainable commercial model ahead of peers and is now developing its liquid-fuel Pallas-1, designed for low-Earth orbit with a 5-ton payload.

CAS Space, backed by the Chinese Academy of Sciences, has achieved eight successful launches of its Lijian-1 (also known as Kinetica-1), including three international payloads — making it the only Chinese private launcher so far with overseas contracts.

iSPACE, China's first private rocket company, has faced a bumpy path since its Hyperbola-1 became the nation's first privately built rocket to reach orbit in 2019, followed by several failures and a return to success in 2025.

The next phase of competition centers on reusable liquid-fuel rockets, offering greater payload capacity and lower potential costs. LandSpace drew attention in July 2023 when its Zhuque-2 became the world’s first methane-oxygen rocket to reach orbit. The firm is now developing the Zhuque-3, a reusable stainless-steel launcher that even drew praise from Elon Musk, who said it blends elements of Starship and Falcon 9.

Space Pioneer became the first private firm in two decades to achieve orbital success on its maiden flight in April 2023. Its next model, the Tianlong-3, uses kerosene and liquid oxygen and is designed to carry up to 17 tons to low-Earth orbit. A 36-satellite separation test was completed in October, with its first flight slated by end-2025.

Private funding rounds have accelerated. Space Pioneer raised 2.5 billion yuan (about US$350 million) in October for rocket and engine production. Galactic Energy secured 2.4 billion yuan in September to develop its reusable liquid rocket, while iSPACE raised 700 million yuan for its Hyperbola-3 program.

Funding data show capital is still flowing into private launch firms despite long development cycles and uncertain returns — a sign of growing confidence in China's commercial space push.

Downstream demand from low-orbit satellite networks is also fueling the expansion. Shanghai Spacecom Satellite Technology, operator of the Qianfan constellation, recently shortlisted LandSpace, Space Pioneer, and CAS Space for an "18-satellite launch" contract, signaling market confidence in their readiness.

Yixin Aerospace develops communication payloads for small satellites; MinoSpace produces satellites and ground stations with annual capacity above 60 units; and Adaspace Technology, which filed for a Hong Kong IPO, launched the world's first space-computing constellation in May and plans a 2,800-satellite global network.

Recent CSRC reforms have made the STAR Market a preferred venue for advanced-tech IPOs, after regulators reopened a fifth listing channel that allows unprofitable companies in sectors such as AI, space, and low-altitude economy to go public. Officials see the space industry as key to building satellite internet, 6G communications, and navigation networks underpinning China's next phase of digital growth.

As capital flows intensify and policy support grows, the question now is whether China's new space firms can turn engineering breakthroughs into sustainable business models.