The China Securities Regulatory Commission (CSRC) has issued policy opinions to create a dedicated “Sci-Tech Innovation Growth Tier” within the STAR Market and roll out a package of reforms aimed at making the STAR Market’s arrangements more inclusive and better adapted to high-quality technology companies. As part of the initiative, the CSRC will restart the use of the STAR Market’s fifth set of listing standards for unprofitable enterprises, alongside measures intended to strengthen investor protection. The opinions set out requirements for the new Growth Tier, including its positioning, criteria for companies to enter and exit the tier, enhanced information disclosure and risk disclosure, and tighter investor suitability management. The reform package also includes six pilots and rule changes: introducing a “seasoned professional institutional investor” mechanism for fifth-standard issuers; piloting an IPO pre-review mechanism and improving pre-filing communication services at the exchange; expanding the scope of the fifth standard to cover more frontier technology sectors such as artificial intelligence, commercial space and the low-altitude economy; allowing unprofitable applicants under review to conduct capital increases and share issuances to existing shareholders; improving institutional mechanisms to support STAR Market listed companies; and strengthening the STAR Market’s capacity to coordinate investment and financing. Next, the CSRC will work with the Shanghai Stock Exchange and other market participants to implement the reforms and related demonstration cases, and will step up policy communication and interpretation.

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