The China Securities Regulatory Commission (CSRC) recently announced plans to establish a sci-tech growth tier on the Shanghai Stock Exchange (SSE)'s Sci-tech Innovation Board (STAR Market) and enhance institutional inclusiveness and adaptability.

　　The plan was issued by the CSRC through its Opinions on Setting up a Science and Technology Innovation Growth Tier in the SSE STAR Market to Enhance Institutional Inclusiveness and Adaptability on June 18.

　　This reform focuses on serving sci-tech enterprises with significant technological breakthroughs, broad commercial prospects and substantial ongoing R&D investment that are currently in the non-profit stage. After implementation, all existing and newly registered unprofitable sci-tech listed companies will be included in this growth layer.

　　The landmark reform, which "places greater emphasis on corporate sci-tech innovation capabilities and allows companies aligned with the STAR Market positioning — even if currently unprofitable or with accumulated losses — to list," has achieved remarkable results since the STAR Market's inception. Fifty-four unprofitable enterprises have successfully listed on the STAR Market. In 2024, these 54 companies generated a total operating revenue of 174.479 billion RMB, with 26 surpassing one billion RMB in revenue.

　　The SSE, in implementing the requirements of the new policy, has solicited public feedback on two accompanying business rules drafted simultaneously. Additionally, the SSE is researching and formulating revisions to relevant business rules, which will be subsequently released.

　　The six policy measures introduced will enhance institutional inclusiveness and adaptability for high-quality sci-tech enterprises on the STAR Market. The first measure involves piloting a system to introduce experienced professional institutional investors for companies applying the fifth set of STAR Market listing standards.

　　The second measure trials an IPO pre-review mechanism for high-quality sci-tech enterprises, allowing eligible companies to apply for an exchange review of their filing documents before formal IPO submission.

　　The third measure expands the applicability of the fifth set of standards to support more cutting-edge sci-tech sectors, such as artificial intelligence, commercial aerospace and the low-altitude economy, in adopting the STAR Market's fifth listing standard. Currently applied mainly to biopharmaceuticals, this standard suits enterprises with complex product technologies, heavy capital investment and long R&D cycles, and has already achieved positive results.

　　The remaining three policies propose specific measures to support unprofitable sci-tech companies undergoing review in raising capital from existing shareholders, improve institutional mechanisms for STAR Market-listed companies, and enhance the coordinated market functions of investment and financing on the STAR Market.