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China’s STAR Market Clears First Unprofitable IPO Since Fifth Standard Revival

Published: Jul. 2, 2025 4:17 a.m. GMT+8

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A bull statue outside the Shanghai Financial Exchange Square, which houses the Shanghai Stock Exchange, on June 5, 2025. Photo: Bloomberg

China’s Nasdaq-style STAR Market has approved its first initial public offering (IPO) under revived rules for unprofitable companies, as Wuhan Heyuan Biotechnology Co. Ltd. cleared a key listing committee review on Tuesday — signaling renewed support for innovative but loss-making firms.

Founded in 2006, Heyuan Biotech specializes in recombinant protein expression technologies and is recognized as a national high-tech enterprise. The company plans to raise 3.5 billion yuan ($488 million) by issuing 89.45 million shares, with Guotai Haitong Securities serving as the lead underwriter.

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STAR Market approved Wuhan Heyuan Biotechnology’s IPO, the first for an unprofitable firm under revived rules.
Heyuan aims to raise 3.5 billion yuan ($488 million); its lead drug completed Phase III trials in 2024 but the company reported annual losses over 100 million yuan.
The fifth standard, reinstated to support innovative sectors, now applies to 32 listed firms with "U" designations, down from 54.

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Who’s Who

Wuhan Heyuan Biotechnology Co. Ltd.: Wuhan Heyuan Biotechnology Co. Ltd. (Heyuan Biotech) is a Chinese national high-tech enterprise founded in 2006, specializing in recombinant protein expression technologies. They plan to raise 3.5 billion yuan (~$488 million) through an IPO on China's STAR Market, making them the first under revived rules for unprofitable companies. Heyuan Biotech's lead product, HY1001, completed Phase III trials in 2024, with regulatory approval expected soon.

Guotai Haitong Securities: Guotai Haitong Securities served as the lead underwriter for Wuhan Heyuan Biotechnology Co. Ltd.'s initial public offering on China's Nasdaq-style STAR Market. This IPO marked the first approval under revived rules for unprofitable companies, signaling renewed support for innovative but loss-making firms.

Zhixiang Jintai: Zhixiang Jintai is a biotech company that went public on the Nasdaq-style STAR Market in June 2023. Its listing marked the effective freezing of the fifth listing standard for unprofitable companies until its recent revival. As of July 1, 2024, Zhixiang Jintai is one of 32 companies identified with a "U" symbol on the STAR Market.

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What Happened When

2022：: Heyuan Biotech reported revenue of 13.4 million yuan.

June 2023：: The STAR Market's fifth listing standard was effectively frozen after biotech firm Zhixiang Jintai went public due to IPO scrutiny over unprofitable listings.

2024：: Heyuan Biotech reported revenue of 25.2 million yuan.

2024：: Heyuan Biotech’s lead product HY1001 completed Phase III clinical trials.

September 2024：: Heyuan Biotech’s new drug application was accepted by regulators.

June 2025：: The China Securities Regulatory Commission (CSRC) reinstated the STAR Market's fifth listing standard as part of measures to support high-tech and strategic industries.

By July 1, 2025：: Regulatory reviews of Heyuan Biotech's new drug application were nearly complete, with approval expected soon in 2025.

Tuesday, July 1, 2025：: Wuhan Heyuan Biotechnology Co. Ltd. cleared the STAR Market's listing committee review for IPO approval under the revived rules for unprofitable companies.