Hong Kong wants to attract IPOs of Chinese rocket and satellite manufacturers

Hong Kong plans to change listing rules to attract more Chinese commercial space companies to its stock exchange—from rocket manufacturers to satellite system developers. This could increase Hong Kong's competition with Shanghai for tech IPOs.

The corresponding plan was presented by Hong Kong Chief Executive John Lee in his annual policy address. Hong Kong Exchanges and Clearing (HKEX) is to begin consultations in the first half of 2027 on changes to Chapter 18C of the listing rules, which regulates the listing of specialist technology companies.

This regime allows technology companies that, due to the nature of their business model, do not yet meet HKEX's usual requirements for profit, revenue, or cash flow, to list. This model is typical for many young companies in the space sector, where developing rockets, engines, and satellite technology requires large investments long before stable revenues are achieved.

Hong Kong authorities want to expand the possibilities of this mechanism for aerospace sector enterprises and use the city's financial market as a channel for attracting international capital for Chinese space companies.

So far, a significant portion of such companies target the Shanghai Stock Exchange. According to the South China Morning Post, among the candidates for listing there are CAS Space and LandSpace Technology—Chinese developers of commercial launch vehicles who are working, among other things, on reusable rocket systems.

Hong Kong's activation comes amid a sharp increase in investor interest in the space business following a major SpaceX IPO in June. The Hong Kong government views commercial astronautics as one of the promising high-tech sectors in which the city can combine Chinese technology companies with international capital.

The plans are not limited to the stock exchange. The authorities also intend to simplify the procedure for reviewing license applications for low-orbit satellite systems and assist operators with international coordination of orbits and radio frequencies.

Separately, Hong Kong plans to fund research in satellite technology, remote sensing, materials for the space industry, and equipment for space missions. The state-owned Hong Kong Investment Corporation is to use long-term capital for early investments in promising projects and help Chinese space companies enter overseas markets.

Thus, Hong Kong is trying to use its position as an international financial center for the development of Chinese commercial astronautics. However, specific changes to the listing rules have not yet been approved—before their introduction, HKEX will conduct market consultations.

Based on materials from: South China Morning Post, Hong Kong government