The domestic commercial space sector is moving beyond a singular experimental phase and entering an intensive period of technology iteration driven by both private enterprises and state-owned entities, with the industry's core hard capabilities continuously strengthening. In the private space domain, the Zhuque-3 reusable rocket's second test vehicle successfully completed a static fire test on June 29, with a follow-up vertical recovery technology verification for its first stage scheduled for an appropriate time. Achievements from state-backed teams have also realized critical breakthroughs. On July 10, the Long March 10B launch vehicle successfully completed its mission, an advancement that makes China the second country globally to master orbit-class reusable rocket technology. This formally propels the domestic commercial space industry from a high-cost phase of technological exploration into a new developmental stage characterized by low costs and scalable implementation.
Reusable rocket technology is the core key to reducing costs, increasing efficiency, and achieving scalable network deployment in commercial space. According to statistics from AVIC Securities, the per-launch cost of SpaceX's Falcon 9 rocket is approximately $50 million, with the first-stage booster and fairing accounting for a disproportionately high share of that cost. By leveraging recovery and reuse technology, the marginal cost per launch can be compressed to around $15 million, representing a cost reduction of up to 70%. As domestic reusable rocket technology gradually matures and moves towards commercialization, it is expected to specifically address the two core problems that have long constrained industry development during the deployment of low Earth orbit satellite constellations: high costs and insufficient launch capacity.
Guosen Securities points out that the Long March 10B's successful demonstration of orbit-class recovery provides private enterprises with a validated, systematic solution. This helps reduce trial-and-error costs, shorten iteration cycles, and incentivizes domestic commercial space companies to accelerate their pace of reusable rocket testing, promoting parallel breakthroughs across multiple technical pathways such as land-based vertical recovery and sea-based deck landing leg recovery. Multiple models represented by the Zhuque-3 and Long March 12B are also expected to conduct recovery verification tests in the near future. The pattern of "a hundred flowers blooming" across different technical routes will accelerate the pace of industrial iteration.
Consequently, against the backdrop of continuous technological realization and strengthening industrial logic, capital continues to flow into related popular ETFs despite recent market pullbacks in the commercial space sector. Currently, the only ETF in the entire market tracking the CSI All Share Aerospace & Defense Index – the Aerospace ETF (563380) – has seen net capital inflows on 8 out of the 10 trading days so far this month. Year-to-date cumulative net inflows have reached 1.116 billion yuan, pushing its latest fund unit total to a record high since inception of 1.059 billion units, a massive increase of 626% compared to the beginning of the year, indicating a relatively significant liquidity advantage.
As one of the representative products offering high-purity exposure to the aerospace segment within the broader defense sector, the Aerospace ETF (563380) has a portfolio where National Defense & Military Industry stocks account for a high weight of 96.82%. It broadly covers core industry chain segments such as Aerospace Equipment II and Aviation Equipment II, which together constitute a high proportion of 77%, and extends into strategic emerging industry directions like large aircraft and the low-altitude economy. It is positioned to help investors gain one-click access to multiple core opportunities including AI + Aerospace, reusable rockets, space-based computing power, and low Earth orbit satellite internet, making it a potential core tool for conveniently capturing the high-growth commercial space sector.
As one of China's first ETF managers, the fund company has been deeply engaged in the index investment field for over 19 years, having created transparent, convenient, and low-cost index tool products for investors such as the CSI 300 ETF (510300) and the A500 ETF (563360). As of the end of March 2026, the company's ETFs had cumulatively generated profits exceeding 223.4 billion yuan for holders over the preceding two years, making it one of only three public fund companies in the A-share market during the same period to achieve cumulative profits exceeding two hundred billion yuan.
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