On July 13th, the broader market experienced a full-scale adjustment, with the Shanghai Composite Index falling over 1%. Technology and growth stocks saw further declines in the afternoon session, with all popular themes in the red. The commercial space sector was not spared, with Tianyin Electromechanical leading the drop at 12%, Guobo Electronics and Zhongke Star Map falling over 10%, and Addsino Co.,Ltd. (SHE: 000547), Lianchuang Optoelectronics, Torch Electronics, Haige Communications, and others hitting the daily limit down.
Among popular on-exchange funds, the Military ETF Huabao (512810) opened lower and continued to decline, plunging over 6% intraday to hit its lowest level in nearly six months! However, it continued to trade at a premium, indicating active buying interest. Data shows that the underlying index of 512810 has a commercial space concept weighting exceeding 78%.
Just the previous trading day (July 10th), the Long March 10B launch vehicle successfully achieved a controlled first-stage recovery! This marks China's first successful controlled recovery of a launch vehicle's first stage and also represents the world's first net-based recovery of a launch vehicle. That day, the commercial space sector surged across the board, sparking a wave of limit-up gains.
The sharp reversal in the commercial space sector today following its recent surge may be attributed to profit-taking after positive news and a shift in overall market risk appetite. The medium to long-term investment thesis remains unchanged, suggesting potential opportunities may be found during pullbacks.
Research from CITIC Securities points out that the successful recovery mission of the Long March 10B launch vehicle is expected to significantly reduce China's satellite launch costs, thereby accelerating satellite constellation deployment. The resulting capital expenditures are likely to create substantial investment opportunities. Future focus should be on the private reusable commercial rocket sector. It is advised to monitor the progress of recovery technology validation by reusable commercial rocket companies and the scaling up of satellite manufacturing capacity expansion. Additionally, attention should be paid to the IPO processes of private commercial space enterprises expected around 2026-2027.
The Military ETF Huabao (512810) passively tracks the CSI Military Index, providing comprehensive exposure to hot themes including commercial space, low-altitude economy, large aircraft, MLCC, military AI, and gas turbines. It is also eligible for margin trading and the Stock Connect schemes, serving as an efficient tool for gaining exposure to core military assets.
The "commercial space content" refers to the weighting of commercial space concept stocks within the CSI Military Index. Data is sourced from FinD as of July 2, 2026, with the content ratio calculated against the Commercial Space Index (886078).
Data is sourced from the Shanghai and Shenzhen Stock Exchanges and public information.
Note: When subscribing for or redeeming fund shares, subscription/redemption agents may charge a commission of up to 0.5%, which includes relevant fees charged by the stock exchanges and registration institutions.
Risk Warning: The Military ETF Huabao passively tracks the CSI Military Index, which has a base date of December 31, 2004, and was launched on December 26, 2013. The index constituents mentioned in this article are for illustrative purposes only. Descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings or trading trends of any fund managed by the fund manager. The composition of the underlying index is adjusted according to its compilation rules. The fund manager assesses the risk level of Military ETF Huabao as R3 - Medium Risk, suitable for Balanced (C3) and above investors. Any information appearing in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, or 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 responsibility is accepted for any direct or indirect losses arising from the use of this content. Fund investment involves 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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