The aerospace sector has experienced some recent pullback due to factors like adjustments in rocket launch schedules. However, with the steady advancement of several major domestic space projects and the continuous validation of technologies like reusable rockets and high-density launches, the long-term growth potential for the aerospace industry is expected to expand further.
On July 5th, the Long March 8A carrier rocket successfully delivered the Qianfan Polar Orbit 15 satellite group into its intended orbit, marking a complete mission success. Market focus is on the Long March 10B carrier rocket, which has its inaugural launch window set for July 10-13, 2026, and is scheduled to lift off from the Wenchang Commercial Space Launch Site in Hainan. This model features a globally pioneering sea-based net recovery system.
Analysts point out that with the inaugural flight of the Long March 10B imminent, a successful launch could signify the official transition of state-led reusable rocket technology into the operational phase. This development is anticipated to propel China's space industry into a new era characterized by low-cost, high-frequency, and "airline-like" launch services, making core suppliers across the commercial aerospace supply chain worthy of attention.
Against the backdrop of sustained industry growth, capital interest in the aerospace sector has notably increased. As the sole ETF currently tracking the CSI All Share Aerospace Index in the market, the Aerospace ETF Huatai-PineBridge (563380) has seen net capital inflows for three consecutive trading days. Over a longer period, the product has accumulated net inflows of 9.82 billion yuan year-to-date. This has propelled its latest fund units and net asset value to 9.30 billion units and 9.27 billion yuan respectively, representing massive increases of 537% and 445% compared to the start of the year.
From a launch cadence perspective, China's space activities are entering a high-frequency phase. Data indicates that in the first half of 2026, a total of 154 space launches were completed globally, with China accounting for 44 of them. This represents a 25.7% increase from the 35 launches in the same period of 2025, setting a new record for the corresponding period. On the satellite front, two major domestic low-earth orbit (LEO) constellation projects are also accelerating. By the first half of 2026, China's GW constellation had cumulatively launched 41 satellites across 5 batches, with the number of operational satellites in orbit reaching 177 (excluding test satellites), indicating a gradual acceleration in network deployment.
Overseas satellite internet deployment is also expanding rapidly. Regulatory filings show that SpaceX recently submitted an application to authorities, planning to construct a third-generation LEO satellite constellation with a total planned deployment of 100,000 satellites. The entire constellation is designed with two thin orbital layers at altitudes of 323-327.5 km and 473-477.5 km respectively, intensifying competition in the global satellite internet arena.
As a representative product offering high-purity exposure to the air and space segment within the defense sector, the Aerospace ETF Huatai-PineBridge (563380) has a portfolio weight of 96.82% in defense-related stocks. It provides broad coverage of core industry chain segments such as aviation equipment and aerospace equipment, which together account for approximately 77% of the index. The ETF also extends into strategic emerging industries like commercial aircraft and low-altitude economy. It aims to offer investors a convenient way to capture multiple core opportunities, including AI+ aerospace, reusable rockets, space-based computing, and LEO satellite internet, positioning itself as a key tool for accessing the high-growth commercial aerospace sector.
As one of China's first ETF managers, Huatai-PineBridge Fund has been dedicated to the field of index investment for over 19 years. It has developed transparent, easily tradable, and low-cost indexed products for investors, such as the Huatai-PineBridge CSI 300 ETF (510300) and the Huatai-PineBridge A500 ETF (563360). By 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 to achieve cumulative profits over two hundred billion during that period.
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