The 2026 Government Work Report has for the first time explicitly designated the aerospace sector as a national "emerging pillar industry," with a specific emphasis on "accelerating the development of satellite internet." This is further supported by recent policy and industry advancements, including the establishment of a commercial space administration, accelerated constellation construction, and an increased frequency of rocket launches. As a crucial component of this sector, the strategic importance of commercial space is expected to evolve from a key development point to a foundational element supporting the broader economic structure. Positive signals from the policy level are quickly being reflected in capital markets, leading to increased interest in related ETFs.
Wind data shows that the Aerospace ETF (563380), the only ETF in the market tracking the CSI All Share Aerospace Index, has experienced net capital inflows for two consecutive trading days (March 11-12, 2026), attracting a total of 68 million yuan. This has boosted its latest net asset value to 907 million yuan, reaching a new high since its inception.
Aijian Securities points out that the global commercial space industry is transitioning from a technology demonstration phase to one of scaled industrialization. On one hand, expectations for a SpaceX IPO continue to build, potentially establishing a valuation benchmark for the commercial space sector and clarifying the capital market's pricing framework for the long-term growth potential of space infrastructure. On the other hand, as reusable rocket technology matures and low Earth orbit satellite constellations like Starlink enter a phase of large-scale deployment, demand for rocket launches and satellite manufacturing is accelerating. Upstream segments involving high-end materials and core components are expected to be among the first to benefit, providing a foundation for sustained improvement in industry chain prosperity.
Therefore, despite short-term fluctuations in the commercial space sector, policy direction continues to drive accelerated technological breakthroughs and commercialization. Utilizing the Aerospace ETF (563380) may offer a convenient way to position for the development opportunities associated with China's ambition to become a major aerospace power. It is reported that its underlying index, the CSI All Share Aerospace Index, primarily focuses on aerospace capabilities within the defense sector, with a 96.8% weighting in the defense industry. Its top five constituents - AECC Aviation Power, Aerospace Electronics, China Satellite, AVIC Shenyang Aircraft, and AVIC Optoelectronics - are all key players in the industry, potentially helping investors capture opportunities in areas like scaled commercial space launches and space-based computing.
The fund manager of Aerospace ETF (563380), Huatai-PineBridge Fund, is one of China's first ETF managers. For years, it has been committed to providing investors with index tool products characterized by transparency, convenient trading, and low fees. Two of its flagship ETF products - the Huatai-PineBridge SSE 300 ETF (510300) and the Huatai-PineBridge A500 ETF (563360) - are highly popular in the market, currently ranking first in size among their respective ETF categories. Their management fee of 0.15% per annum and custody fee of 0.05% per annum are among the lowest tiers for equity index funds in the market.
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