The successful maiden flight of the Long March 10B marks a significant milestone for China's aerospace industry, achieving the nation's first controlled recovery of a launch vehicle's first stage. This technological breakthrough coincides with a surge in initial public offering (IPO) activity among commercial space enterprises. Data indicates that at least 15 commercial space companies have initiated IPO processes, with companies like Zhongke Aerospace and Weina Xingkong entering the inquiry stage on the STAR Market in the first half of the year.
Analysts suggest that, from a medium to long-term perspective, reusable rocket technology is forging the commercial cycle that shifts the industry from being driven by "policy and capital" to being driven by "endogenous profitability." As technological breakthroughs, capital influx, and market demand converge, China's commercial space sector, a market valued in the trillions, is entering a phase of genuine value realization.
Pivotal Year for Reusable Technology Validation
On July 10th, the Long March 10B carrier rocket launched from the Hainan Commercial Space Launch Site, successfully deploying its satellite payload into the intended orbit. The mission was a complete success, featuring the successful recovery of the rocket's first stage. This mission represents China's first successful controlled recovery of a launch vehicle's first stage and the world's first net-based sea recovery of a carrier rocket.
The breakthrough in reusable rocket technology is viewed as a critical inflection point for commercial spaceflight's transition to large-scale commercial operations. In the latter half of the year, multiple reusable rockets are expected to undergo their maiden flight validations.
Recently, LandSpace completed a static fire test for its Zhuque-3 reusable Yao-2 carrier rocket at the Dongfeng Commercial Aerospace Innovation Test Zone. All critical pre-launch ground verification work for this rocket has now been completed. The test team will proceed with launch preparations according to the established plan, ensuring full readiness for the flight test mission.
According to information obtained from Oriental Space, its Gravity-2 reusable liquid carrier rocket is expected to be ready for its maiden flight by the end of the year and has currently entered the phase of extensive ground testing.
BOC International analysis suggests that reusable heavy-lift launch vehicle technology can effectively reduce the cost per unit payload for launches. China's mastery of recovery technology will help alleviate the developmental bottleneck of "many satellites, few rockets" and insufficient launch capacity. The commercial space industry chain is poised to enter a new developmental stage characterized by cost reduction, efficiency improvement, and scale realization.
"2026 will be a pivotal year for the validation of reusable technology," stated Yang Shaoxian, Chief Commercial Space Researcher at CCID Research Institute. In the future, companies that first master reusable, low-cost, high-capacity launch capabilities will capture the majority of the commercial launch market share, leading to a more pronounced 'head effect.' However, the path from successful recovery to economically viable reuse remains long, with reliability and cost control being the two core areas requiring breakthroughs.
Leading Companies Accelerate IPO Race
As reusable rocket technology advances rapidly, commercial space companies are also accelerating their race towards IPOs. Data from CVSource shows that as of June this year, at least 15 commercial space companies have initiated IPO processes.
This trend is supported by continuously strengthening favorable policies and corresponding adjustments in capital market regulations. In 2025, the STAR Market incorporated commercial space into its fifth set of listing criteria, setting "the successful first orbit insertion of a payload using a reusable medium-to-large launch vehicle" as a hard requirement. This links IPO eligibility directly to technological prowess, helping commercial rocket companies in the critical phase of large-scale commercialization to access financing channels in the domestic capital market.
The intended use of funds by leading companies confirms this trend. For instance, LandSpace's IPO application was accepted by the STAR Market on December 31, 2025. Its review resumed and entered the "inquiry" status on June 29, 2026, with plans to raise 7.5 billion yuan. Of this, 2.77 billion yuan is earmarked for a reusable rocket capacity expansion project, and 4.73 billion yuan for a reusable rocket technology enhancement project.
Furthermore, Zhongke Aerospace's IPO application was accepted by the STAR Market on March 31, 2026, entering the inquiry stage in April. It plans to raise 4.18 billion yuan, focusing primarily on two core projects: a high-capacity reusable rocket and reusable launch vehicles.
A representative from Zhongke Aerospace stated that the company is focusing on key projects including the development of reusable large launch vehicles, reusable launch vehicles and spacecraft, and a reusable liquid engine industrial base. "A launch vehicle company is both a manufacturer and a service provider; the core is to truly industrialize launch vehicle production. These related projects will lay the foundation for subsequent mass production, ensuring the sustained delivery of high-capacity, low-cost, high-frequency, and highly reliable rocket launch services," the representative said.
"The current period presents a favorable window for leading companies to proactively engage with the public market. This helps further identify companies with genuine engineering capabilities and sustainable technological innovation, while also supporting their transition from technology validation to scaled-up production capacity," commented Hu Yingkun, Investment Director of the Second Department at Jiantou Huake Investment.
Capital Market Focuses on High-Growth Expectations
Industry insiders indicate that at the current stage, investors are placing greater emphasis on a company's "future earning potential" rather than its immediate profitability. This reflects the capital market's high-growth expectations for the commercial space industry. The recent high valuation expectations for SpaceX's IPO are a prime example; despite reporting a net loss of $4.94 billion in 2025, the market's target valuation for the company remains between $1.75 trillion and $2 trillion.
Yang Shaoxian believes that currently, the speed of technological innovation and iteration, the level of cost reduction and efficiency improvement, and the establishment of a commercial cycle and profitability are becoming core concerns for investors.
She elaborated further: First, the company's technological barriers, such as in-house R&D capabilities and validation progress for core technologies like reusable rockets and satellite payloads, as well as its influence and supply chain control within specific segments and key links of commercial space. These are the core elements for long-term competitiveness. Second, the ability to achieve commercial implementation, focusing on order visibility, customer stickiness, and the potential for a closed commercial loop, which directly impacts long-term resource allocation and market space. Third, the capacity for scaled and sustainable supply, assessing whether a company can transform technological prototypes into industrially mass-produced products, forming a stable, safe, and continuous supply capability.
Hu Yingkun noted that the primary market currently employs a hybrid pricing model incorporating "milestones, real options, and order visibility." Key considerations for investors include technological barriers and the correctness of the technical roadmap, the track record of achieving milestones such as launch success rates and on-orbit operation success rates, the degree of commercialization, and supply chain cost control. Companies with clear timelines for recovery and reuse, along with well-defined commercialization pathways, are likely to gain a first-mover advantage in subsequent financing rounds and valuations.
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