China’s private space industry is preparing for a new phase of expansion, with several companies planning initial public offerings (IPOs) after recent breakthroughs in reusable launch technology, according to the South China Morning Post (SCMP).
The fundraising push comes as Beijing seeks to build a stronger private space ecosystem capable of competing with Elon Musk’s SpaceX, which currently dominates the global commercial launch market.
The strategy follows a series of successful reusable rocket tests by Chinese companies, marking progress in a technology seen as key to lowering launch costs and increasing flight frequency.
Exchange filings in Shanghai and Hong Kong showed at least 15 aerospace companies preparing to go public. Among those preparing for listings are leading launch firms, including LandSpace, Space Pioneer and Galactic Energy.
LandSpace Technology, one of China’s leading commercial launch firms, resumed its IPO process in late June after updating its financial filings. The company, which aims to raise 7.5 billion yuan ($1.1 billion), had its listing review suspended in March after its financial disclosures expired.
Days later, LandSpace said its Zhuque-3 reusable rocket completed a full-duration static fire test, a key milestone before launch. Both LandSpace and CAS Space plan to use funds raised through their IPOs to accelerate the development of reusable rocket technology.
Last week, China Aerospace Science and Technology Corporation (CASC) achieved a stunning milestone when it successfully recovered the Long March-10B carrier rocket at sea via a recovery platform. This was the country’s first attempt to demonstrate reusable rocket technology–a feat mastered by SpaceX.
Unlike SpaceX’s Falcon 9, which lands vertically on a pad or drone ship, the Long March-10B booster was recovered using an interception net mounted on a floating platform, a first in rocket launch history.
The IPO plans are expected to fund research, manufacturing capacity and commercial launches as China’s private space sector enters a more competitive phase.
The SCMP report cites a Bank of China International report that estimates that building a low-Earth-orbit communications satellite in China costs around 20 million yuan, nearly three times the roughly 7 million yuan it takes in the US.
Launch costs show a similar gap—at least $5,000 per kilogram in China against as low as $1,500 per kilogram for American providers.
SpaceX built its commercial launch business around reusable Falcon 9 rockets, enabling it to carry out frequent launches at lower cost. Chinese companies are now pursuing similar technology as they seek a larger share of the global launch market.
