CSRC Accelerates Launch of “1+6” Policy Measures to Deepen STAR Market Reform

On June 18, Wu Qing, Chairman of the China Securities Regulatory Commission (CSRC), stated at the 2025 Lujiazui Forum that the CSRC will focus on enhancing the inclusiveness and adaptability of institutional frameworks. By deepening reform of the STAR Market and ChiNext and emphasizing diversified equity financing, the aim is to develop a more attractive and competitive market system and product-service matrix. The CSRC will also coordinate the advancement of investment and financing reforms and investor protection, working to create a capital market ecosystem that supports comprehensive innovation.

Wu revealed that the CSRC is set to introduce a package of “1+6” policy measures to further advance STAR Market reform. This includes establishing a STAR Growth Segment and resuming the application of the fifth listing standard for unprofitable enterprises. Additionally, the CSRC plans to officially implement the third listing standard on ChiNext, facilitating the listing of high-quality, innovative, and unprofitable companies.

Wu emphasized that innovation depends on collaboration among scientists, entrepreneurs, and investors. He noted that China’s capital market has undergone significant structural changes, promoting a virtuous cycle between technology, capital, and industry. The multi-tiered market system has extended its coverage to technological innovation, with listed companies becoming key drivers of R&D. Patient capital now plays a more prominent role in enabling tech innovation.

Wu also pointed out that the capital market’s role in serving tech innovation and industrial upgrading has, in turn, improved its own structure, efficiency, and investment value. He remarked that technological innovation, industrial development, and capital markets are interdependent, and that fostering this positive cycle is essential for the future of capital market reform and high-quality growth.

The CSRC will enhance the role of the STAR Market as a reform pilot. The STAR Growth Segment will be launched, and the fifth listing standard for unprofitable companies will be reinstated to better support firms with major technological breakthroughs, strong commercial potential, and sustained R&D. The CSRC will also introduce six additional measures: piloting institutional investment mechanisms for companies applying the fifth standard, trialing IPO pre-review mechanisms for high-quality tech companies, expanding fifth standard eligibility to sectors like AI, commercial aerospace, and low-altitude economy, supporting unprofitable companies under review in raising capital from existing shareholders, refining refinancing systems and strategic investor criteria, and increasing STAR-related investment products and risk management tools. The CSRC also plans to implement the third listing standard on ChiNext to support the listing of high-quality unprofitable innovation enterprises.

The CSRC will strengthen the integration of equity and debt financing to support innovation. It will advance the development of tech bonds, improve issuance and trading mechanisms, enhance supporting structures such as subsidies and guarantees, expedite the rollout of tech bond ETFs, and foster hybrid instruments like exchangeable and convertible bonds.

Efforts will be made to expand patient and long-term capital. By addressing key challenges across fundraising, investment, management, and exit in private equity, the CSRC will streamline processes and encourage participation from pension funds, insurance institutions, and industrial capital. Measures include regularizing fund share transfer pilots, optimizing in-kind stock distribution, and supporting a broader range of tech innovation indices and public fund products. Shanghai will be supported in establishing dedicated tech firms and asset management platforms to help institutions strengthen investment and risk control capabilities.

The CSRC will support tech-based listed companies to improve operations. It will enhance regulatory systems across the entire lifecycle of listed firms, ensure implementation of the “Six M&A Measures” and new restructuring guidelines, and introduce initiatives such as staged payments in stock consideration and simplified restructuring reviews. Reforms will also improve the equity incentive framework to boost flexibility and support core competitiveness. Regulatory oversight will remain strict, targeting misconduct such as insider trading and market manipulation to protect small and medium investors.

The CSRC also aims to build an open and inclusive capital market ecosystem. A series of key opening-up measures will be accelerated in 2025, including the release of an optimized QFII framework and expanding access and trading operations. The number of futures and options products available to QFII will rise to 100. The CSRC, in collaboration with the People’s Bank of China, will explore RMB foreign exchange futures to improve risk management for financial institutions and enterprises. The listing of LNG futures and options is also under consideration to facilitate broader foreign participation in China’s capital markets and enable global investors to benefit from China’s innovation-led growth.