On July 3rd, the aerospace and aviation sector continued its upward trajectory. Huabao Fund's General Aviation ETF (159231), which provides one-stop exposure to commercial spaceflight, satellite navigation, the low-altitude economy, and large aircraft, opened higher and maintained its gains, closing up 3.64% for the day with net subscriptions of 3 million units.
Over 90% of the 50 constituent stocks in the General Aviation Index closed in positive territory. Among them, Aerospace Huanyu surged 16%, while Guanglian Aviation, Tianyin Electromechanical, and Aileda each gained over 8%. Aerospace Nanhu rose more than 7%, with multiple stocks including Yinboer, Guorui Technology, and Aerospace Electronics advancing over 6%.
Key Catalysts for Commercial Space
The commercial space sector has recently been buoyed by multiple positive developments:
Launch Windows Approach: The maiden flight window for the Long March 10B rocket is set for July 10th to 13th. It will test the world's first "sea-based net recovery" technology at the Wenchang Commercial Space Launch Site. Separately, the Zhuque-3 Yao-2 rocket completed a static fire test on June 29th and is expected to launch in early to mid-July.
Space Computing Center Inaugurated: At the 2026 Global Digital Economy Conference's Space Computing Forum, the Beijing Space Computing Innovation Center was officially inaugurated. It aims to build a comprehensive vertical capability system covering "chips, hardware, systems, intelligence, and ecosystem."
Accelerated Company IPOs: Two commercial rocket firms, LandSpace and CAS Space, updated their IPO prospectuses for the STAR Market on the same day, both currently in the "under inquiry" stage, signaling a faster pace of industry capitalization.
Technical Breakthroughs: Galactic Energy's independently developed Cangqiong-50 reusable liquid oxygen/kerosene engine successfully completed its 163rd routine hot-fire test on July 1st. Additionally, CAS Space completed a long-duration qualification test for its 110-ton-class liquid oxygen/kerosene engine, Liqing II.
Analyst Outlook on the Sector
A research report from Everbright Securities notes that the coming period may see intensive launches of multiple domestic reusable rockets. Progress on projects like the Long March 10B's sea-based net recovery and the Zhuque-3's vertical recovery could mark a critical shift for China's commercial space sector from "theme-driven catalysts" to a "validation of technological inflection points." The continuous iteration and advancement of reusable rocket technology are expected to alleviate supply constraints for low Earth orbit (LEO) constellation development and enhance the growth certainty across segments like satellite manufacturing, ground terminals, rocket manufacturing and recovery support, and measurement, tracking, and control. The commercial space industry is approaching a crucial threshold in launch capacity.
Investment Vehicle for Aerospace Growth
The General Aviation ETF (159231) and its feeder funds (Class A: 024766; Class C: 024767) track an index that comprehensively covers 50 aerospace and aviation constituents. It encompasses hot sectors such as the low-altitude economy, commercial spaceflight, satellite navigation, large aircraft, drones, and military aircraft. The ETF has over 90% exposure to the low-altitude economy concept, over 60% to commercial spaceflight, and over 45% to satellite navigation, making it a strategic tool for one-stop allocation to China's aerospace industrial chain. (Data as of June 30, 2026)
Fund Fee Structure
The General Aviation ETF does not charge a sales service fee. Subscription and redemption agents may charge a commission of up to 0.5%. On-exchange trading fees are subject to the rates set by securities firms. For the General Aviation ETF Huabao Feeder Fund Class A, the subscription fee is: RMB 1,000 per transaction for amounts over RMB 2 million; 0.6% for RMB 1-2 million; and 1% for amounts below RMB 1 million. The redemption fee is: 1.5% for holdings under 7 days; 0% for holdings over 7 days. No sales service fee is charged. For the Class C feeder fund, the redemption fee is 1.5% for holdings under 7 days and 0% for holdings over 7 days, with an annual sales service fee of 0.25%.
Important Risk Disclosures
The General Aviation ETF passively tracks the SZSE General Aviation Industry Index. The index base date is June 29, 2012, and its release date is December 28, 2012. The index constituent list is adjusted per its compilation rules, and its back-tested historical performance is not indicative of future results. The mention of index constituents herein is for illustrative purposes only and does not constitute investment advice in any form, nor does it represent the holdings or trading动向 of any fund managed by the fund manager. The fund manager assesses this fund's risk rating as R3-Medium Risk, suitable for Balanced (C3) and higher risk-tolerance investors. Suitability matching opinions should be based on the selling institution's assessment. Any information appearing in this text (including but not limited to stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are responsible for their own investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice of any kind to readers, and no liability is accepted for any direct or indirect losses arising from the use of this content. Fund investment carries risks. The past performance of a fund is not indicative of its future results. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Invest with caution.
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