The aerospace and aviation sector experienced a significant intraday reversal on July 9th. The Huabao General Aviation ETF (159231), which provides exposure to commercial aerospace, satellite navigation, the low-altitude economy, and large aircraft, saw its on-exchange price initially drop by 2.66% before staging a recovery. It oscillated higher in the afternoon session and gained further momentum towards the close, ultimately finishing up 1.14%, halting a three-day losing streak. The fund saw continued inflows, adding 7 million units, following cumulative inflows of 9.21 million yuan over the previous five trading days.
Among the 50 constituent stocks of the General Aviation Index, 38 advanced, 11 declined, and one was flat. Zongshen Power Machinery Co., Ltd. led the gains, rising over 7%, followed by Raytron Technology Co., Ltd. which gained over 6%. China Spacesat Co., Ltd. increased by more than 5%, while Aerospace HuanYu (Beijing) Technology Co., Ltd. and CAS StarMap (Beijing) Technology Co., Ltd. both rose over 4%. AVIC Hefei Hongguang Measuring and Controlling Technology Co., Ltd. and Guanglian Aviation Industry Co., Ltd. were among several stocks that gained more than 3%.
Key Market Developments
On the news front, the "July Twin Stars" launches are imminent. The Long March 10B rocket is scheduled for its maiden flight between July 10th and 13th from Wenchang, aiming to validate the world's first "sea-based net recovery" technology, designed for high payload capacity requirements. Meanwhile, Landspace's Zhuque-3 rocket has completed a static fire test and is expected to conduct a vertical recovery verification test in mid-July, following a model similar to SpaceX's Falcon 9.
Analysis from CITIC Securities notes that since June 2026, China has conducted multiple intensive launches of internet satellite groups. The Qianfan constellation has executed four launch missions, pushing the total number of in-orbit satellites past the 200 mark. The commercial aerospace sector recently experienced a significant correction due to factors including some rocket launch failures/delays and shifts in market risk appetite. However, with a dense schedule of upcoming catalysts and an expected recovery in market sentiment, the outlook for the commercial aerospace sector is viewed positively.
Investment Vehicle for the Sector
The Huabao General Aviation ETF (159231) and its feeder funds (Class A: 024766; Class C: 024767) track a benchmark index that comprehensively covers 50 aerospace and aviation constituents. This includes hot sectors such as the low-altitude economy, commercial aerospace, satellite navigation, large aircraft, drones, and military aircraft. The fund's exposure to the low-altitude economy concept exceeds 90%, commercial aerospace over 60%, and satellite navigation over 45%, making it a strategic tool for gaining diversified exposure to China's aerospace industry chain. (Data as of June 30, 2026)
Data sources: Shanghai and Shenzhen Stock Exchanges, iFind. The related concept indices are 886067.TI (Low-altitude Economy), 886078.TI (Commercial Aerospace), and 885574.TI (Satellite Navigation). Concept exposure is calculated as the combined weight of constituent stocks shared between the General Aviation Index and the respective concept indices, as of June 30, 2026.
Recent market volatility may be elevated. Short-term performance is not indicative of future results, and fund investments may incur losses. Investors must make rational investment decisions based on their own financial situation and risk tolerance, paying close attention to position sizing and risk management.
Fund Fee Information
The Huabao 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 Huabao General Aviation ETF Feeder Fund A, the subscription fee is: 1% for amounts below 1 million yuan; 0.6% for 1-2 million yuan; a flat 1,000 yuan per transaction for amounts over 2 million yuan. The redemption fee is: 1.5% for holdings under 7 days; 0% for holdings 7 days or more. No sales service fee is charged. For the Huabao General Aviation ETF Feeder Fund C, the redemption fee is: 1.5% for holdings under 7 days; 0% for holdings 7 days or more. An annual sales service fee of 0.25% applies.
Risk Disclosure
The Huabao General Aviation ETF passively tracks the CNI General Aviation Industry Index. The index base date is June 29, 2012, and its release date is December 28, 2012. The index constituents are adjusted according to its compilation rules. The index's back-tested historical performance does not predict its future performance. Constituent stocks mentioned herein are for illustrative purposes only; individual stock descriptions are not investment advice of any form and do not represent the holdings or trading intentions 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 profile investors. Suitability matching opinions are subject to the sales institution. Any information appearing in this article is for reference only. Investors are solely responsible for their independent investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice to readers, and no liability is accepted for any direct or indirect losses arising from the use of this content. Fund investment carries risks. A fund's past performance is not indicative of its future results. The performance of other funds managed by the fund manager does not guarantee this fund's performance. Invest with caution.
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