FINANCE

China to Reopen STAR Market to Loss-Making Tech Firms

Published: Jun. 18, 2025 9:06 p.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

Wu Qing, chairperson of the China Securities Regulatory Commission, speaks at the Lujiazui Forum in Shanghai on Wednesday. Photo: CSRC

China’s Nasdaq-style STAR Market will reopen its doors to unprofitable companies as part of a broader set of measures announced Wednesday that aim to strengthen the stock market’s role in supporting high-tech and strategic emerging industries.

The measures include setting up a special sector for sci-tech growth companies on the Shanghai-based market, launching a pre-IPO review mechanism, and refining refinancing and strategic investor criteria, Wu Qing, chairman of the China Securities Regulatory Commission (CSRC), said in a speech at the annual Lujiazui Forum in Shanghai.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

China’s STAR Market will allow unprofitable companies to list again, reinstating the fifth listing standard aimed at high-tech, high-potential firms with at least 4 billion yuan ($556.7 million) market cap.
New measures introduce a sci-tech growth sector, relaxed IPO rules on STAR and ChiNext markets, and focus on supporting innovative industries like AI and biotech.
These reforms address previous IPO restrictions and aim to better support high-quality technology enterprise growth.

AI generated, for reference only

Who’s Who

Nasdaq-style STAR Market: The Nasdaq-style STAR Market, established in 2019, aims to fund high-tech and emerging industries in China. It's reopening to unprofitable companies and introducing a specific sector for sci-tech growth. Despite past tightening due to scandals, these changes signify a renewed focus on supporting innovative, high-potential tech firms through refined listing standards and investor criteria.

ChiNext: ChiNext, operated by the Shenzhen Stock Exchange, is a board specifically for innovative and fast-growing companies in sectors like technology, biotechnology, and renewable energy. It will now allow high-quality, loss-making innovative companies to conduct IPOs.

AI generated, for reference only

What Happened When

2019：: The STAR Market was established to give technology companies greater access to capital markets and pioneer reforms such as the registration-based IPO system.

2022：: Regulators tightened oversight of IPOs, especially among unprofitable companies, after scandals and concerns about shortcomings in the registration-based system.

August 2023：: The CSRC tightened IPO approvals again, effectively closing the STAR Market listing door for unprofitable companies.

By March 2025：: A CSRC chairman-hosted meeting pledged support for IPOs by 'quality' unprofitable tech companies, raising expectations that the de-facto ban would be lifted.

June 18, 2025：: China announced measures at the Lujiazui Forum, including reopening the STAR Market to unprofitable companies and setting up a sci-tech growth sector.

AI generated, for reference only