ModelBest started a pre‑IPO tutoring program on August 12, 2026, hiring Citic Securities as it prepares for a STAR Market listing under newly expanded rules for loss‑making AI firms.
ModelBest began a pre‑IPO tutoring program on August 12, 2026 for a mainland listing and hired Citic Securities to manage the preparation. The move follows a June 17, 2026 regulatory change that opened China’s STAR Market to loss‑making AI and quantum‑technology companies.
ModelBest, a Chinese artificial‑intelligence startup, announced the start of a pre‑initial‑public‑offering (pre‑IPO) tutoring process on August 12, 2026, targeting a listing on the mainland’s STAR Market [1]. The same day the company disclosed that it had retained Citic Securities to guide its pre‑listing preparation [1]. The regulatory backdrop for the filing is a policy shift announced on June 17, 2026 by China’s top securities regulator and the Shanghai Stock Exchange, which expanded pre‑profit IPO access to artificial‑intelligence and quantum‑technology firms [2].
The pre‑IPO effort involves ModelBest and Citic Securities as the primary advisors [1]. The STAR Market’s updated rules now permit companies that have not yet turned a profit, including AI startups, to raise capital through public equity offerings [2]. In parallel, other AI‑focused firms such as DeepSeek have begun preparing for IPO filings, with the company indicating readiness to submit an application as early as later this year [3]. The regulatory change was presented by the securities regulator as a structural adjustment aimed at supporting high‑tech sectors, including artificial‑intelligence enterprises, within China’s public markets [2].
Regulatory Context and Pre‑IPO Process
The June 17, 2026 announcement by the China Securities Regulatory Commission (CSRC) and the Shanghai Stock Exchange introduced new eligibility criteria for the STAR Market, allowing loss‑making AI and quantum‑technology companies to list without a profitability requirement [2]. The policy revision was part of a broader effort to enhance the capital‑raising environment for deep‑tech firms and to align China’s market infrastructure with global trends in technology financing [2].
ModelBest’s engagement of Citic Securities follows a standard “pre‑IPO tutoring” model used by Chinese firms to meet the STAR Market’s disclosure and compliance standards [1]. The tutoring process includes due‑diligence reviews, financial statement preparation, and alignment with the STAR Market’s corporate governance requirements [1]. By securing a major securities firm, ModelBest aims to satisfy the regulatory checklist and expedite its path to a public offering.
The pre‑IPO effort involves ModelBest and Citic Securities as the primary advisors [1].
DeepSeek, identified as a leading AI pioneer in China, has publicly stated its intention to file for an IPO within the calendar year, reflecting a wave of listings among AI companies seeking public capital [3]. Industry reports note that several AI startups are simultaneously advancing their IPO preparations, underscoring the immediate impact of the regulatory change on market activity [4].
Impact on Education Technology Stakeholders
Chinese AI Startup ModelBest Initiates Pre‑IPO Process as STAR Market Expands Access for Loss‑Making Firms
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The inclusion of loss‑making AI firms on the STAR Market expands the pool of publicly listed companies that develop artificial‑intelligence applications for education technology (EdTech) [2]. For investors, the regulatory shift creates additional avenues to fund AI‑driven EdTech solutions through listed equity instruments.
Educational institutions and EdTech vendors may experience increased access to capital as AI startups leverage public listings to finance product development, scaling, and international expansion [2][3]. The broader market participation of AI firms can also affect competitive dynamics, as publicly funded companies gain resources to enhance AI‑based learning platforms, assessment tools, and personalized instruction systems [4].
Regulators and policymakers can monitor the influx of AI‑focused listings to assess compliance with data‑privacy and security standards relevant to educational data [2]. The STAR Market’s oversight mechanisms, which include continuous disclosure obligations, provide a transparent framework for tracking the financial health and operational practices of AI‑enabled EdTech providers [2].
Key Facts
What: ModelBest began a pre‑IPO tutoring process for a mainland STAR Market listing.
Educational institutions and EdTech vendors may experience increased access to capital as AI startups leverage public listings to finance product development, scaling, and international expansion [2][3].
When: August 12, 2026, following a June 17, 2026 regulatory expansion.
Impact: The regulatory change broadens public‑market access for AI firms, including those serving the EdTech sector.
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