The China Securities Regulatory Commission will roll out two new reform packages for the nation's tech-heavy STAR board, Chairman Wu Qing said at the Lujiazui Forum in Shanghai on Wednesday.

The changes will loosen current listing standards to accommodate developers of large language models and advanced technologies like bio-manufacturing, while also encouraging Hong Kong-listed companies to dual-list domestically.

The regulatory shift comes as Chinese equities stage a tentative recovery from a multi-year slump, fueled by Beijing's policy support, a global AI boom, and improving domestic sentiment.

Regulators are looking to capitalize on this rebound, channeling long-term capital toward what President Xi Jinping terms "new quality productive forces," even as they vow to crack down on speculative "concept hype."

Beijing is balancing a delicate act in reviving its IPO pipeline for high-tech sectors while maintaining a tight grip on market volatility. Earlier this month, Wu emphasized that the CSRC would tighten oversight to eliminate market manipulation and disorderly trading.

The regulator will also issue guidelines on regulating the use of AI in the capital market, while strictly crack down on malpractices including illegal stock recommendations using AI.

Policymakers have overhauled equity financing for innovation-driven firms, introducing flexible listing thresholds and fast-tracking review processes for tech companies. The efforts appear to be gaining traction. Chinese exchanges hosted 66 initial public offerings this year through June 14, raising 59.63 billion yuan ($8.3 billion), a 66% surge compared to the same period last year, according to the state-backed China Securities Journal.

The policy push also aims to attract overseas capital at a time when geopolitical tensions and slowing economic growth weigh on foreign investor appetite. Officials have stressed the importance of developing a well-functioning capital market capable of providing long-term financing for innovation to support China's economic restructuring.