The lunar orbiter was launched atop an advanced Long March-3C rocket from the Xichang Satellite Launch Centre in southwest China's Sichuan province, Xinhua reported.
The test spacecraft separated from its carrier rocket and entered the expected orbit shortly after the liftoff, according to the State Administration of Science, Technology and Industry for National Defence.
The whole mission will take about eight days. Developed by China Aerospace Science and Technology Corporation, the spacecraft will half orbit the moon and return to the Earth.
On its return, the test spacecraft will approach the terrestrial atmosphere at a velocity of nearly 11.2 km per second and rebound to slow down before re-entering the atmosphere. It will land in north China's Inner Mongolia Autonomous Region.
The mission is to obtain experimental data and validate re-entry technologies such as guidance, navigation and control, heat shield and trajectory design for a future touchdown on the moon by Chang'e-5, which is expected to be sent to the moon, collect samples and return to the Earth in 2017.
It is the first time China has conducted a test involving a half-orbiter around the moon at a height of 380,000 km before having the spacecraft return to the Earth.
The test orbiter is a precursor to the last phase of a three-step moon probe project, a lunar sample return mission.
China carried out Chang'e-1 and Chang'e-2 missions in 2007 and 2010, respectively, capping the orbital phase.
The ongoing second phase saw Chang'e-3 with the country's first moon rover Yutu on board succeed in soft landing on the moon in December 2013. Chang'e-4 is the backup probe of Chang'e-3 and will help pave the way for future probes.