China plans to resume initial public offerings (IPOs) for unprofitable startups on its technology-focused stock exchanges.

This decision, announced by Wu Qing, chairman of the China Securities Regulatory Commission (CSRC), aims to boost technological independence and ease IPO market restrictions.

At the Lujiazui Forum in Shanghai on June 18, 2025, Wu said that pre-profit companies can once again list on the Shanghai Stock Exchange’s Science and Technology Innovation Board (Star Market).

The relaxed rules will also apply to Shenzhen’s ChiNext board, which focuses on smaller firms.

This policy change follows two years of tightened IPO approvals aimed at stabilizing China’s stock market by limiting equity supplies. The shift is intended to support startups as Beijing seeks to decrease reliance on foreign technology.

Trading on the Star Market began in 2019 and currently includes 588 companies with a total market value of 6.74 trillion yuan (US$937.9 billion), according to the Shanghai Stock Exchange.

Notable firms on the board include Semiconductor Manufacturing International and AI chipmaker Cambricon Technologies.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ China’s IPO policy shift reflects strategic technology ambitions amid US restrictions

China’s decision to resume listings for unprofitable startups comes amid its intensified push for technological self-sufficiency in response to US restrictions.

The timing is significant as US-China tensions have prompted Beijing to accelerate its tech indigenization efforts, with American export controls and investment restrictions serving as catalysts for China’s self-reliance strategy 1.

This policy shift supports China’s “Made in China 2025” initiative, which aims to establish leadership in critical sectors including information technology and robotics through significant government investment 1.

The STAR Market, established in 2019 after President Xi’s directive, was specifically designed to serve as China’s answer to Nasdaq, a platform to nurture domestic tech champions that could reduce China’s dependence on foreign technology.

By reopening funding channels for pre-profit tech firms, China is addressing a key vulnerability highlighted during the ongoing trade tensions: the need to develop homegrown alternatives to US technology 2.

2️⃣ CSRC’s regulatory pendulum swing reveals the balancing act between market stability and innovation funding