China in a recent push has eased initial public offering (IPO) rules for the firms known for developing reusable commercial rockets.
According to new guidelines based on June’s regulations, the companies will be given access to a fast lane for IPOs on the tech-heavy STAR market.
These firms will be exempted from some financial requirements as reported by the Shanghai Stock Exchange on Friday.
The announcement comes as Beijing is striving hard to plug a gap in its space capabilities, aiming to outcompete the United States in the space race.
Currently, the US is dominant in reusable rocket technology, demonstrating impressive ability to return, recover, and reuse a rocket’s first stage after being launched.
The fast lane waives profitability and revenue requirements for Chinese rocket firms, shifting the focus to technical milestones. The companies will be required to have at least one successful orbital launch by using reusable technology.
Bid to compete with Elon Musk’s SpaceX
Elon Musk’s owned SpaceX currently holds a dominance over reusable technology. The aerospace company uses its signature Falcon 9 reusable rocket for putting satellites into orbit.
Earlier this month, LandSpace, China’s leading private rocket firm became the first domestic firm to perform reusable rocket tests by launching its new Zhuque-3 model.
However, the launch failed at the stage of recovering the rocket’s booster.
LandSpace has shown ambition to achieve successful rocket recovery by mid-2026 with the second-time launch of the Zhuque-3 model.
But the company said that in order to compete with SpaceX, unrestricted access to China’s capital markets is the need of hour.
