China has strategically updated its financial regulations in a bid to close the technological gap with the United States and SpaceX in the space industry. The Shanghai Stock Exchange has put into effect new regulations that will facilitate the initial public offering (IPO) processes of domestic companies developing reusable rocket technology.
Technological Achievement” Replaces Financial Thresholds
The new guidelines announced for the technology-focused STAR Market under the Shanghai Stock Exchange aim to accelerate access to capital for defense and aerospace startups. According to information reported by Reuters, this new “fast-track” mechanism will exempt Chinese rocket companies from the profitability and minimum revenue thresholds that are mandatory in traditional IPO processes.
Under the new regulation, the main criteria for companies have been defined as follows:
- No Profitability Requirement: The obligation for companies to be profitable has been removed; the focus has shifted from financial figures to technological capabilities.
- Orbital Success: To qualify for an IPO, companies must have carried out at least one successful orbital launch using reusable rocket technology.
- Strategic Priority: Companies involved in national missions or integrated into major state projects will receive priority support.
Domestic Initiatives Against SpaceX’s Dominance: The LandSpace Example
The Beijing administration views the low-cost launch capability achieved by Elon Musk’s SpaceX—particularly with Falcon 9—as a national security risk. Planning to establish its own massive satellite constellations in Low Earth Orbit (LEO), China is investing in booster recovery technology to reduce launch costs.
One of the sector’s leading players, LandSpace, became the first private company to comply with these new stock market rules by successfully placing a satellite into orbit with its Zhuque-3 model during a launch conducted on December 3, 2025. Although the vertical landing of the first stage did not result in complete success, the orbital achievement will be considered sufficient for the company to enter the financial markets.
Source: C4Defence / Reuters
