China to fast track IPOs for reusable rocket tech firms in space race

China’s Shanghai Stock Exchange now allows commercial rocket companies to access capital from public investors while their products are still developing. 

China has announced new regulations that will make it significantly easier for commercial rocket companies developing reusable launch technology to access public capital markets.

New requirements to list on the STAR market 

The Shanghai Stock Exchange revealed on Friday that firms working on reusable rockets can now bypass standard financial requirements like profitability limits and minimum revenue requirements when listing on the tech-focused STAR market.

These firms will instead be required to demonstrate that they have achieved at least one successful orbital launch using their reusable rocket technology.

The United States currently dominates the reusable rocket sector, with SpaceX’s Falcon 9 being the only regularly operational reusable rocket system that routinely delivers satellites into orbit.

Earlier in December, LandSpace, China’s leading private rocket manufacturer, conducted the country’s first full test of a reusable rocket with its new Zhuque-3 model. The launch successfully placed a satellite into orbit using reusable rocket technology, but the mission did not complete the critical step of recovering the rocket’s first-stage booster.

China’s commercial space ambitions and national security priorities were not helped much by the half-full, half-empty outcome of the mission.

China aims to deploy tens of thousands of satellites into low-Earth orbit within the coming decades, creating a large network of constellations that would rival or exceed SpaceX’s Starlink network. The country’s officials believe that SpaceX’s dominant position in the industry is a national security concern.

The country is actively deploying two major satellite megaconstellations including the Guowang network, which is managed by state-owned China Satellite Network Group and plans to deploy up to 13,000 satellites.

The network already launched over 100 satellites as of November 2025. The Qianfan constellation, backed by Shanghai’s municipal government, aims to deploy approximately 15,000 satellites by 2030 and has launched around 90 satellites to date. Starlink currently has 6,800 active satellites.

Is the new regulation necessary?

LandSpace has stated publicly that it will need access to China’s capital markets to remain competitive with SpaceX.

Similar to other high-tech sectors where companies require massive upfront investment before generating profits by removing profitability and revenue barriers, the Shanghai Stock Exchange is giving rocket companies the opportunity to raise substantial funds from public investors, even while their products remain in development stages.

LandSpace received 900 million yuan ($123 million) from China’s National Manufacturing Transformation and Upgrading Fund in December 2024. The company filed preliminary documents with Chinese regulators in late July, and could launch an initial public offering in early 2026.

The Shanghai Stock Exchange previously changed its regulations in June to make it easier for pre-profit innovative companies to list on the STAR market. The new guidelines also prioritize companies that take up national missions or participate in major state-led space projects.

LandSpace has announced plans to attempt a complete rocket recovery in mid-2026 during the second launch of its Zhuque-3 system.

Aside from LandSpace, other Chinese state-owned enterprises and private companies are now rushing to test their own reusable rocket designs, with access to the capital needed for rapid development and scaling.

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