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China May Restart Allowing Unprofitable Tech Firms to List, Sources Say

Published: Mar. 12, 2025 7:33 p.m. GMT+8

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Unprofitable companies mostly stopped applying for IPOs on the Chinese mainland since applications were rejected following the CSRC’s tightening of IPO approvals in August 2023. Photo: AI generated

China is likely to restart allowing unprofitable tech companies to list on Shanghai’s STAR Market, sources with knowledge of the matter said, showing intensified financing support for technology innovations.

The Shanghai Stock Exchange has recently told several intermediary institutions that it particularly supports the listing of high-tech firms, multiple sources from investment banks and private equity firms told Caixin. It’s clear that regulators are paving the way for reopening the IPO channel to money-losing tech companies, they said.

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China plans to restart IPOs for unprofitable tech companies on Shanghai's STAR Market, enhancing financial support for tech innovation.
The STAR Market, since its 2019 inception, allows high-tech firms to raise public funds, setting criteria such as a 4 billion yuan market value and regulatory approvals.
Currently, 54 loss-making companies, mainly in pharmaceuticals and tech sectors, listed on the STAR Market, with nearly 20 reaching profitability.

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What Happened When

2019：: The STAR Market was established to pioneer reforms for China's stock markets, allowing unprofitable high-tech companies to raise money.

August 2023：: CSRC tightened IPO approvals, rejecting applications from unprofitable companies as part of efforts to reverse a stock market downturn.