Space & Satellites
LandSpace Plans IPO on Shanghai STAR Market Boosting China Space Tech
LandSpace files for IPO on Shanghai STAR Market, highlighting advances in methalox rockets and reusable technology in China’s private space sector.
LandSpace Technology, a private Chinese aerospace company, has filed to list on the Shanghai Stock Exchange’s STAR Market, signaling a major step forward for China’s commercial space sector. The IPO, announced in July 2025, comes as the company continues to make technological strides, particularly with its methane-fueled, reusable rockets. This development is not just a financial milestone for LandSpace, but also a significant indicator of China’s broader ambitions in space innovation and commercialization.
Founded in 2015, LandSpace has positioned itself as a key player in the rapidly growing private space industry in China. The company made global headlines in July 2023 when it became the first to successfully launch a methane-liquid oxygen (methalox) rocket into orbit, a significant technological achievement that even SpaceX had not yet accomplished at the time. The IPO filing reflects both internal progress and external confidence, bolstered by state-backed funds and prominent venture capital investors.
China’s STAR Market, often compared to NASDAQ, was designed to support innovative and high-tech enterprises. With recent reforms allowing unprofitable but high-growth companies to list, LandSpace’s IPO aligns with a national strategy to foster cutting-edge technologies in sectors like aerospace, AI, and semiconductors. This article explores LandSpace’s trajectory, its financial and technological milestones, and the broader implications for China’s space ambitions.
LandSpace’s most notable achievement to date is the successful orbital launch of its Zhuque-2 rocket in July 2023. This marked the first time a methane-liquid oxygen rocket reached orbit, a feat that placed the company ahead of competitors like SpaceX and Blue Origin in this specific propulsion technology. Methalox engines are considered cleaner and more efficient than traditional fuels, making them ideal for reusable launch systems.
The Zhuque-2’s success was not just a technical win but also a symbolic one. It demonstrated the viability of China’s private space sector and showcased the country’s capacity to develop cutting-edge technologies independently of Western aerospace giants. The use of methalox also sets the stage for more sustainable and cost-effective space missions, aligning with global trends toward greener space exploration.
LandSpace’s pivot from solid-propellant to liquid-propellant rockets after the failed Zhuque-1 launch in 2018 shows a willingness to adapt and innovate. The company’s development of the Tianque-12 engine, which powers its newest rockets, underscores its commitment to advancing Propulsion technology. These engines are designed to support partial reusability, a feature that could significantly reduce launch costs over time.
“LandSpace’s Zhuque-2 rocket became the world’s first methane-liquid oxygen rocket to reach orbit, placing it ahead of U.S. rivals in adopting cleaner, reusable propulsion systems.”
In June 2025, LandSpace completed a 45-second static fire test of its Zhuque-3 rocket, a stainless steel vehicle powered by nine Tianque-12A engines. This test generated 7,542 kilonewtons of thrust, positioning the rocket as a formidable competitor to SpaceX’s Falcon 9. The Zhuque-3 is designed for partial reusability and is expected to carry up to 18,300 kilograms to low Earth orbit in its reusable configuration.
A successful orbital launch of the Zhuque-3, planned for late 2025, would make LandSpace the second company globally after SpaceX to launch a reusable orbital-class rocket. This would mark a significant leap in China’s ability to offer competitive launch services, both domestically and internationally. The Zhuque-3 is also expected to support the deployment of the Haolong cargo spacecraft, enhancing China’s logistics capabilities in space. Reusable rockets are a game-changer in the aerospace industry. They dramatically reduce the cost per launch and increase the frequency of missions. LandSpace’s success in this area could not only boost its commercial prospects but also contribute to China’s broader strategy of building a sustainable space economy.
LandSpace filed its IPO application with the Shanghai STAR Market in July 2025. While the exact fundraising target has not been disclosed, the company has a strong track record of attracting significant investment. In December 2024, LandSpace raised 900 million yuan (approximately USD 125 million), and in 2020, it secured 1.2 billion yuan (around USD 171 million). These rounds were backed by prominent investors including HongShan (formerly Sequoia Capital China), Country Garden, and several state-affiliated funds.
The IPO comes at a time when the STAR Market has introduced a new “growth tier,” allowing unprofitable but innovative companies to list. This policy shift is particularly beneficial for companies like LandSpace, which are heavily invested in R&D and long-term technological development. The STAR Market has raised over USD 153 billion since its inception in 2019, supporting more than 50 unprofitable tech firms to date.
LandSpace’s alignment with national strategic goals, such as the development of dual-use technologies for both commercial and defense applications, adds another layer of investor appeal. The company has received support from the National Manufacturing Transformation and Upgrading Fund and maintains partnerships with state-owned enterprises like the Chengdu Aircraft Design Institute.
LandSpace’s IPO is part of a larger narrative: China’s ambition to become a dominant player in the global space economy. The government has significantly increased funding for space-related initiatives, with an estimated budget exceeding USD 14 billion in 2023. Private companies like LandSpace are now integral to national goals, including the deployment of large-scale satellite constellations and the development of reusable launch systems.
China aims to launch up to 10,000 satellites by 2030, creating its own version of Starlink. LandSpace’s reusable rockets could play a critical role in achieving this objective by offering cost-effective and frequent launch capabilities. The company’s technological advancements also support China’s goals in scientific research, national security, and international collaboration.
The STAR Market’s reforms are designed to keep innovation within China’s borders. By offering a domestic platform that rivals NASDAQ, the Chinese government hopes to retain high-tech talent and capital. LandSpace’s listing could serve as a blueprint for other aerospace startups seeking to scale without relying on foreign markets.
LandSpace’s planned IPO on the STAR Market represents more than just a financial milestone. It is a testament to the maturation of China’s private space sector and the country’s broader ambitions in space exploration and commercialization. By pioneering methalox propulsion and reusable rocket technology, LandSpace is positioning itself, and by extension, China, as a formidable force in the global aerospace industry. As the company prepares for its next major launch with the Zhuque-3, all eyes will be on whether it can deliver on its promise of reusability and cost-efficiency. If successful, LandSpace could redefine what is possible for private space firms in China and beyond, setting a new standard for innovation, sustainability, and strategic alignment with national goals.
What is LandSpace? What is the STAR Market? Why is the Zhuque-3 rocket significant? How much funding has LandSpace raised? What makes methalox rockets important?
China’s SpaceX Rival LandSpace Eyes IPO in Shanghai
LandSpace’s Technological Milestones
The Rise of Methalox Propulsion
Zhuque-3 and the Reusable Rocket Race
Financial and Strategic Positioning
IPO Details and Investor Confidence
China’s Broader Space Strategy
Conclusion
FAQ
LandSpace is a Chinese private aerospace company founded in 2015, known for developing methane-fueled rockets and pioneering reusable launch technology in China.
The STAR Market is a tech-focused stock exchange under the Shanghai Stock Exchange, designed to support innovative and high-growth companies, including those that are not yet profitable.
The Zhuque-3 is designed to be partially reusable and could make LandSpace the second company globally to launch a reusable orbital-class rocket, following SpaceX.
As of 2025, LandSpace has raised approximately USD 485 million across multiple funding rounds from both private and state-backed investors.
Methane-liquid oxygen propulsion is cleaner and more efficient than traditional fuels, making it ideal for reusable rockets and long-term space missions.
Sources
Photo Credit: Reuters