China Opens STAR Market Listing for AI Large Model Firms
In a landmark policy shift announced at the 2026 Lujiazui Forum in Shanghai, China Securities Regulatory Commission (CSRC) Chairman Wu Qing declared that the STAR Market’s Fifth Set of Listing Standards would be expanded to cover artificial intelligence large model enterprises, according to Xinhua News. The move, effective immediately with the Shanghai Stock Exchange (SSE) releasing detailed implementation guidelines the same day, fundamentally opens the door for unprofitable but technologically advanced AI companies to list on China’s A-share market.
A New Pathway for AI Giants
The SSE’s Guideline No. 10, released on June 17, contains 15 specific provisions that establish a clear regulatory framework for AI large model enterprises seeking public listings. The Shanghai Stock Exchange stated that the policy supports companies engaged in “independent R&D of AI large models, model services, or model applications,” covering both general-purpose and industry-specific models.
Under the new rules, companies must have “at least one large model product that has completed online release and achieved large-scale application” at the time of application. The Fifth Set of Standards replaces traditional profitability requirements with a “market cap + R&D” framework, requiring a market capitalization of no less than 40 billion yuan (approximately $5.5 billion), significant market potential, and demonstrated technological achievements.
From Biomedicine to AI
The Fifth Set of Standards was originally created in 2019 specifically for unprofitable biomedical companies. As of mid-2025, all 20 companies listed under this standard were innovative drug enterprises. The expansion to AI represents only the second application of this standard, signaling regulators’ determination to support the sector. The 21st Century Business Herald noted that the standard, “originally a listing channel tailored for unprofitable biomedical enterprises, is being further anchored by regulators to the AI large model赛道.”
Companies Poised to Benefit
Several leading Chinese AI companies are already positioned to take advantage of the new pathway. Zhipu AI, which listed on the Hong Kong Stock Exchange in January 2026 with a market cap of approximately 653.6 billion HKD, announced an A-share IPO plan on June 1 targeting 15 billion yuan in fundraising. The company completed its pre-listing tutoring in just 11 days.
MiniMax, also listed on HKEX in January 2026, signed a tutoring agreement with CITIC Securities on May 29 to initiate its A-share IPO process, as confirmed by CITIC Securities’ official filing. The company is pursuing what could be the fastest A+H dual listing timeline globally at just 127 days from its HKEX debut.
DeepSeek, meanwhile, completed its first external funding round of over 50 billion yuan ($7 billion), with founder Liang Wenfeng personally contributing 20 billion yuan. The company’s post-investment valuation now exceeds 400 billion yuan ($55 billion), and market observers expect an IPO to follow.
Addressing the Profitability Paradox
The policy addresses a fundamental mismatch between AI companies’ heavy upfront R&D costs and traditional listing requirements. Zhipu AI reported 2025 revenue of 724 million yuan but R&D expenditure of 3.18 billion yuan, resulting in a net loss of 4.718 billion yuan. MiniMax posted 2025 revenue of $79 million against a net loss of approximately $1.872 billion. These figures mirror global patterns—OpenAI reported 2025 revenue of ~$13 billion but an operating loss of $20.92 billion.
Strategic Implications
According to analysis from Sina News, the policy “fundamentally changes the capital logic of China’s large models—shifting from ‘profit-oriented’ to ‘growth + technology-oriented.’” This shift opens A-share financing for unprofitable AI giants and returns the pricing power of domestic core AI assets from overseas markets back to the domestic market.
The expansion aligns with China’s broader “new quality productive forces” strategy and the 15th Five-Year Plan, which positions AI as a key growth driver. It also responds to concerns that high-quality AI assets were flowing to overseas markets, as China’s capital market missed the internet wave and policymakers are determined not to miss the AI wave.
What to Watch
Zhipu AI and MiniMax are expected to be the first to test the new pathway, with their STAR Market IPO filings anticipated in the coming months. The CSRC has emphasized strict review thresholds to prevent concept-speculation companies from listing, and has indicated it will issue further guidance on AI use in capital markets. The success of these listings could determine whether China’s AI ecosystem achieves the deep domestic capital pool needed to compete with US counterparts on a global scale.