China Eases IPO Rules For Reusable Rocket Firms

China has relaxed IPO rules to help companies that are developing reusable commercial rockets. These firms will get faster approval to list on Shanghai’s STAR market, even if they do not meet normal profit or revenue requirements, the Shanghai Stock Exchange said on Friday.

The move is part of China’s effort to close the gap with the United States in reusable rocket technology. Right now, the U.S. leads this area, mainly because of Elon Musk’s SpaceX, which can land, recover, and reuse rocket boosters after launch.

Under the new rules, rocket companies do not need to be profitable to go public. Instead, they must show strong technological progress. This includes completing at least one successful orbital launch using reusable rocket technology.

These guidelines build on earlier rules introduced in June that made it easier for innovative startups without profits to list on the STAR market.

SpaceX currently dominates reusable rocket launches with its Falcon 9 rocket, which is the only model regularly reused to send satellites into space. China sees this dominance as a national security concern.

Earlier this month, China’s top private rocket company, LandSpace, tested its new reusable rocket Zhuque-3. While the rocket failed to recover its booster, the launch showed progress toward matching SpaceX’s technology.

Several Chinese state-owned and private companies are now racing to test reusable rockets. LandSpace plans another launch of Zhuque-3 in mid-2026 and hopes to successfully recover the booster then. The company has said it needs access to capital markets because rocket development is very expensive.

The Shanghai exchange’s rules do not require companies to recover a rocket, only that reusable technology is used to place a satellite into orbit — something LandSpace has already achieved.

Companies involved in national missions or major government-led space projects will receive extra support. The new rules take effect immediately, showing how closely China’s commercial space plans are linked to its national goals.

China is also pushing to build its own large satellite networks, which could include tens of thousands of satellites in the coming decades.