China plans to resume listings of unprofitable start-ups on its technology boards in an effort to support the nation’s drive toward technological self-sufficiency and roll back curbs on the initial public offering (IPO) market, according to the head of the stock market regulator. At the Lujiazui Forum in Shanghai on Wednesday, Wu Qing, chairman of the China Securities Regulatory Commission (CSRC), said listings would be restarted for pre-profit firms seeking to trade on the Shanghai exchange’s Technology and Innovation Board, also known as the Star Market. The watchdog would also apply the rule to Shenzhen’s ChiNext board, which hosts smaller companies.\nThe relaxation came as a surprise to investors after two years of strict IPO approvals by the CSRC, which sought to arrest a decline in China’s US$10.5 trillion stock market by reducing equity supplies. The move is seen as a supportive measure for China’s start-ups at a time when Beijing is seeking to reduce its tech reliance on the US amid simmering trade tensions.\n\n“Innovation requires alliance among scientists, entrepreneurs and investors,” Wu said.\nThe Star Market 50 Index, which tracks the 50 biggest stocks on the board, including Semiconductor Manufacturing International and artificial intelligence (AI) chipmaker Cambricon Technologies, reversed a loss of as much as 0.4 per cent before trading little changed. A gauge of the ChiNext board dropped 0.4 per cent.\n\nThe relaxation was meant to “better and more precisely” serve high-quality tech companies that have breakthroughs, big spending on research and development, and promising business outlooks, Wu said. A wider array of unprofitable companies – including firms engaged in AI, commercial aviation and the low-altitude sector – could apply for listings on the Star Market before they became profitable, he said. The CSRC would also kick off a trial programme introducing “seasoned” professional investors to trade the stocks after listings, Wu said.

China to loosen IPO rules by reinstating listings of unprofitable start-ups

China plans to resume listings of unprofitable startups on its technology boards to support technological self-sufficiency and revive the IPO market. China Securities Regulatory Commission (CSRC) Chairman Wu Qing announced the policy at the Lujiazui Forum, allowing pre-profit firms to trade on the Shanghai Star Market and Shenzhen ChiNext board. The move aims to reduce tech reliance on the U.S. amid trade tensions, with the Star Market 50 Index and ChiNext gauge showing minor market reactions.