China to support IPOs by 'future industry' startups, large model companies

China took fresh steps on Wednesday to fund tech innovation amid an intensifying rivalry with the U.S., saying it would support listings of startups in "future ‌industries" like ⁠quantum technology, ⁠nuclear fusion and brain-computer interfaces.

The Shanghai Stock Exchange also published rules to facilitate public share sales by large-model companies on the STAR Market as part of its efforts to promote Chinese artificial intelligence.

The announcements came after China's top securities regulator vowed to "actively embrace" a new phase of technological revolution and industrial upgrades.


The move also comes as Wall Street is hosting major initial public offerings from SpaceX, OpenAI and Anthropic.

"A new wave of technological revolution, led ⁠by AI, ‌is being integrated into production and daily life at an unprecedented pace," said Wu Qing, chairman of the China Securities Regulatory Commission (CSRC), at a forum in ⁠Shanghai on Wednesday.

"Major capital markets around the world are accelerating reforms to better adapt to the needs of innovation and gain leading positions."

Beijing is stepping up efforts to guide capital into the tech sector - a key focus of the Sino-U.S. power rivalry.

The Shanghai Stock Exchange said that it is a "major task" to support the listing of companies in emerging and future industries identified in China's next five-year economic development plan. These industries include hydrogen energy, biomedical engineering and robotics.

The bourse ‌will also support flotation by early-stage large-model companies, which badly need capital market support to fund long-term, intensive research and development.

Wednesday's rules, which are effective immediately, explain how AI large-model companies ⁠can use the STAR Market's so-called fifth listing standard, a framework designed for listing firms that possess strategic technology but are not yet profitable.

CSRC Chairman Wu said regulators will guide more long-term "patient" capital into equity investments to fund tech innovation.

The CSRC had already engaged in capital-market reform to facilitate public listings by innovative tech startups like AI chipmakers and rocket developers.

A number of homegrown companies, including memory-chip giant ChangXin Memory Technologies and robot maker Unitree Robotics, are lining up to float on the domestic market.