China signals revival of biotech IPO route amid regulatory reset

China is preparing to ease access to its capital markets for early-stage biotech companies, signaling what could be a turning of the tide after months of tightened restrictions that stalled initial public offerings.

At the Lujiazui Forum this week, China Securities Regulatory Commission chairman Wu Qing reportedly said the Shanghai Stock Exchange’s Star Market will soon introduce a “growth tier” designed to support emerging science and technology enterprises. This initiative is set to reinstate the fifth listing standard, a rule that permits unprofitable biopharmaceutical and medical technology startups to float shares.

The last company to go public under that framework was Genrix Biopharmaceutical, a Chongqing-based firm, in June 2023. Since then, tightening scrutiny and risk-averse sentiment have made the IPO path largely inaccessible for loss-making drug developers.