China IPO fundraising nearly doubles in 2025 on rule easing

Mainland China saw IPO activity nearly double in 2025 after the securities regulator eased restrictions and resumed approvals for pre-profit tech companies.

Data showed 115 companies raised 128 billion yuan (US$18.3 billion) on the Shanghai, Shenzhen, and Beijing exchanges, up from 67.4 billion yuan (US$9.6 billion) in 2024.

Reforms included allowing pre-profit tech firms to list on Shanghai’s Star Market from June.

Major deals included Huadian New Energy Group’s 18.2 billion yuan (US$2.6 billion) IPO, Moore Threads Technology’s 8 billion yuan (US$1.1 billion) listing, and Xian ESWIN Material Technology’s 4.6 billion yuan (US$657.7 million) raise.

No IPO shares fell below offer prices on debut as regulators capped valuations.

The Shanghai Stock Exchange remained the world’s fifth-largest IPO venue, while the CSI 300 rose nearly 20% and the Star Market gained over 30% in 2025.

🔗 Source: South China Morning Post

🧠 Food for thought

Implications, context, and why it matters.

Pre-profit listing revival hinges on strict sector and technical filters

June 2025 reinstated pre-profit listings on the STAR Market, Shanghai’s Science and Technology Innovation Board, fifth standard 1. Eligibility widened to artificial intelligence, commercial aviation, and the low-altitude economy 1. Low-altitude covers drones and urban air mobility 1. A December 2025 rocket rule requires orbital insertion with reusable medium or large-lift vehicles before filing 2.
ChiNext, Shenzhen’s growth board, sets a third standard with RMB 3 billion in annual revenue and expected market cap over RMB 5 billion 3. Pre-profit issuers on the STAR Market sit in a growth tier with a U suffix, screening scalable ideas after the fifth standard’s suspension since 2023 1.

IPO infrastructure vendors can target the 300-company overseas filing backlog

Over 300 Chinese companies filed overseas since March 2023, with under one-third in the US and most choosing Hong Kong 3. Vendors can handle China Securities Regulatory Commission (CSRC) compliance or eXtensible Business Reporting Language (XBRL) conversion 3. They support Environmental, Social, and Governance (ESG) disclosures 3.
Hong Kong Stock Exchange Chapter 18C sets staged hurdles for specialist tech issuers 3. Commercial companies need at least HKD 250 million in revenue with 15% R&D ratio, while pre-commercial peers face higher market cap plus 30 to 50% R&D ratio 3. LandSpace, a Chinese commercial rocket maker, won STAR Market acceptance in December 2025 and plans to raise RMB 7.5 billion 4. Reusable rocket milestones drive disclosure needs across eight commercial space IPO candidates 2.