The aerospace sector experienced a notable rally on June 12th, with five stocks including Wanfeng Auto, AVIC Hi-Tech, Zongshen Power, and CITIC Offshore Helicopter hitting their daily price limits. The Huabao General Aviation ETF (159231), which provides one-click exposure to commercial aerospace, satellite navigation, the low-altitude economy, and large aircraft, saw its price surge over 5% intraday and is currently up 4%. Despite recent market pullbacks, funds have continued to flow into the ETF, attracting a net inflow of 9.5 million yuan over the past 20 trading days.
A key catalyst for the move is the anticipated direct listing of SpaceX on the U.S. stock market, which is expected to be the largest IPO in history with a valuation of approximately $1.8 trillion, raising $75 billion. Analysis suggests that by examining SpaceX's business model, a clear framework for the global commercial aerospace industry has emerged, with launch services as the foundation and satellite applications driving profitability. For the domestic Chinese market, commercial aerospace is projected to develop in stages. In the near term, it will rely on policy support and government/enterprise contracts, establishing a stable market base worth around 40 billion yuan. In the long run, as reusable rocket technology advances and launch costs continue to fall, Chinese companies are expected to leverage their cost advantages to expand into overseas markets, tapping into a global space services market valued in the hundreds of billions of dollars.
Regarding the low-altitude economy, cities like Shenzhen and Tianjin are accelerating the opening of airspace restrictions. The establishment of the nation's first regular low-altitude flight route signifies stronger policy support, which is expected to accelerate the industrialization process. A key factor previously limiting market expectations for the commercialization of the low-altitude economy was the restriction on airspace usage. The recent widespread relaxation of airspace regulations in multiple regions across the country breaks the previous pattern of "regional limitations and niche applications" for low-altitude flights. This marks a shift from demonstration projects to regular operations and from scattered pilots to widespread adoption. The increased policy support for airspace is expected to accelerate the commercialization process, potentially ushering the industry into a new phase of development.
The Huabao General Aviation ETF (159231) and its feeder fund (Class A: 024766; Class C: 024767) track an index that comprehensively covers 50 constituent stocks in the aerospace sector. It encompasses popular areas such as the low-altitude economy, commercial aerospace, satellite navigation, large aircraft, drones, and military aircraft. The ETF has a concept weighting of over 88% for the low-altitude economy, over 65% for commercial aerospace, and over 47% for satellite navigation, making it a strategic tool for one-stop allocation to China's aerospace industry chain. (Data as of March 31, 2026)
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