Eduardo Baptista
BEIJING, Dec 26 (Reuters) – Chinese companies developing reusable commercial rockets will be able to enter a fast track for initial public offerings on the tech-heavy Science and Technology Innovation Board market, exempting them from some financial requirements, the Shanghai Stock Exchange said on Friday.
Beijing is seeking to address gaps in its space capabilities compared with the United States, which currently dominates the ability to return, recover and reuse rocket first stages or boosters after launch.
The new guidelines build on previous regulations released in June that made it easier for innovative companies that are not yet profitable to list on the STAR Market.
The fast track exempts Chinese rocket companies from profitability and minimum revenue thresholds, instead requiring them to meet key technology milestones, including successful orbital launches using reusable rocket technology.
China aims to break U.S. space exchange stranglehold
US billionaire Elon Musk’s aerospace giant SpaceX currently has a near monopoly on the technology, with its iconic Falcon 9 the only reusable rocket model regularly launched and used to put satellites into orbit.
Earlier this month, China’s leading private rocket company Blue Arrow unveiled a new Zhuque-3 model, becoming the first domestic entity to test a fully reusable rocket, signaling its ambitions to catch up with SpaceX.
While the launch failed to complete the critical step of recovering the rocket booster, Chinese state-owned and private companies are now scrambling to test-fire their own reusable rockets.
Blue Arrow Aerospace has stated that it hopes to demonstrate the successful recovery of the rocket in mid-2026, when Zhuque-3 will conduct its second launch. But the company said the capital-intensive nature of rocket development means it needs access to Chinese capital markets if it hopes to compete with SpaceX.
Shanghai Exchange rules do not stipulate that rocket companies must successfully recover rockets, only that reusable rocket technology be used to put satellites into orbit, which Blue Arrow Aerospace has achieved with this month’s launch.
Under the new guidelines, which take effect immediately, companies undertaking national missions or participating in major state-led space projects will receive priority support, emphasizing the close integration between commercial launch activities and China’s broader strategic goals.
China has repeatedly described SpaceX’s monopoly on low-Earth orbit satellites as a national security risk and is aggressively promoting its own satellite constellation, hoping to number tens of thousands in the coming decades.
(Reporting by Eduardo Baptista; Editing by Joe Bavier)
