China is moving to speed up funding for its commercial space sector. On Friday, the Shanghai Stock Exchange said Chinese companies that build reusable rockets can now use a fast-track to list on the STAR Market.
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The STAR market is China’s main tech-focused exchange. Under the new rules, rocket firms do not need to meet profit or revenue targets. Instead, they must show clear progress in key technology, including at least one successful orbital launch using reusable rocket systems.
This change builds on earlier rules from June that already made it easier for early-stage tech firms to go public. However, the new guidance goes further by focusing on space launch goals rather than financial history.
As a result, Chinese rocket companies can now raise capital sooner. This matters because rocket development is costly and often takes years before profits appear.
Closing the Gap With SpaceX
Meanwhile, Beijing is trying to narrow a significant gap in space exploration with SpaceX (PC:SPXEX). SpaceX is currently the only company that regularly launches and reuses orbital-class rockets.
Its Falcon 9 rocket can return and recover its booster after launch. This lowers costs and allows faster launch cycles. China has said this advantage poses a security risk due to SpaceX’s role in building large satellite networks.
Earlier this month, China’s leading private rocket firm, LandSpace, completed a full reusable rocket test with its Zhuque 3 vehicle. The launch reached orbit but did not recover the booster.
Even so, the new STAR rules do not require a successful booster landing. They only require that reusable technology be used to place a satellite into orbit. Therefore, LandSpace already meets the core standard.
Looking ahead, LandSpace plans to launch another Zhuque 3 in mid-2026 and hopes to recover the booster at that time. However, the company has said access to public capital markets will be key if it wants to compete with SpaceX.
Meanwhile, the Shanghai Exchange said firms tied to national missions or state space programs will get priority support. This shows how closely China’s commercial space push is linked to long-term state goals, including the buildout of large satellite networks in low Earth orbit.
Using TipRanks’ Comparison Tool, we’ve assembled major American companies in the space sector. Some, like AST SpaceMobile (ASTS) and Rocket Lab USA (RKLB), are pure-play, while others, such as Boeing (BA) and RTX (RTX), operate a space division alongside their other operations.
