China refines STAR Market IPO rules for pre-profit rocket firms

by MA Yueran

China has refined listing criteria for pre-profit commercial rocket makers seeking to go public on Shanghai's STAR Market, as regulators move to steer capital toward early-stage, technology-intensive space ventures.

Late on Dec 26, the Shanghai Stock Exchange issued Guideline No. 9, clarifying how commercial rocket companies can apply the STAR Market's fifth listing standard. The 14-article guideline refines requirements on business scope, core technology credentials, milestone achievements, regulatory approvals and commercialization plans.

Issuers' core products must align with national strategies for commercial space, with principal activities focused on independent research, manufacturing and launch services. Companies involved in state-backed missions or major national projects are likely to be favored.

The rules set clearer technical thresholds. Applicants may still be in active R&D or early commercialization, but must have achieved a key milestone at the time of filing: the first successful orbital insertion of payloads by a reusable medium- or large-lift launch vehicle. Firms must also show that no material technical risks remain that could impair future launch missions.

Reusable medium- and large-lift rockets have become a core focus of China's commercial launch sector, as first-stage recovery can cut costs and raise launch frequency, supporting low-Earth-orbit satellite constellations. Policy backing has intensified. In November 2025, the China National Space Administration prioritized low-cost, reusable commercial launch vehicles in its 2025–2027 action plan.

According to incomplete statistics compiled by Jiemian News, at least eight commercial space companies are pursuing IPOs, including five rocket makers: LandSpace, CAS Space, Space Pioneer, Galactic Energy and ispace. Only LandSpace has completed a maiden flight so far, while rivals plan first launches in 2026 — timelines that could shape listing prospects under the new rules.

LandSpace is the furthest along in the IPO process. Disclosures on the China Securities Regulatory Commission platform show that its STAR Market IPO tutoring phase has been completed, with China International Capital Corp acting as sponsor.

Regulatory support for commercial space listings has strengthened this year. In June, the CSRC effectively reopened the fifth STAR Market listing standard for pre-profit firms, backing sectors including commercial space.

Industry executives say the changes are improving access to financing. Sector funding reached 18.6 billion yuan in 2025, up 32% year on year across 67 deals, underscoring rising investor interest even as most companies remain years away from commercial profitability.