The aerospace and aviation sector continued its downward trajectory on July 7th. The price of the Huabao General Aviation ETF (159231), which provides one-click exposure to commercial aerospace, satellite navigation, the low-altitude economy, and large aircraft, experienced volatility and closed down 3.06%. However, capital continued to flow in, with a net subscription of 2 million units on the dip, following cumulative net inflows of 4.52 million yuan over the previous five trading days.
Within the General Aviation Index's 50 constituent stocks, only five were in positive territory. Yingliu Co., Ltd. led the declines, falling over 9%. Tianhe Defense and Zongshen Power both dropped more than 7%, while stocks including Inpower, Chenxi Aviation, Aerospace Huanyu, and Tianyin Electromechanical saw declines exceeding 6%.
The sharp market volatility stands in contrast to a series of positive developments for the commercial aerospace and low-altitude economy sectors, perhaps reflecting intense market speculation on the gap between expectations and actual realization.
The core focus for commercial aerospace lies in two major rocket recovery tests scheduled for early July: the Long March 10B and the LandSpace Zhuque-3. Successful validation would substantially break domestic bottlenecks in launch costs and payload capacity. The low-altitude economy, meanwhile, benefits from its inclusion in the national "Six Networks" new infrastructure plan valued at 7 trillion yuan, with the industry's logic shifting from concept validation to comprehensive infrastructure construction and the substantive implementation of local projects.
Analysts point out that several significant reusable commercial rockets are expected to undergo test flights in the near term. Following batch validation of initial launches, 2026 could see a qualitative leap from quantitative changes in commercial rockets, potentially marking China's entry into the era of rocket reusability. These two upcoming launches are at a critical stage of technological verification. A successful recovery of the Zhuque-3 would be the first orbital-class rocket recovery by a Chinese private aerospace company, while the sea-based net recovery technology for the Long March 10B is a globally pioneering solution. Success would position China as the second country after the United States to master medium-sized reusable rocket technology, signifying a shift from testing to engineering application, driving down launch costs, reshaping the commercial aerospace economic model, and aiding the construction of China's low-earth orbit satellite constellations.
Key upcoming dates and signals to monitor include the final results of the Long March 10B sea-based net recovery test between July 10th and 13th—a crucial test for potentially significantly reducing domestic medium-to-large rocket launch costs. In mid-to-late July, attention will turn to the implementation of the LandSpace Zhuque-3 first-stage vertical soft landing recovery test and subsequent IPO inquiry progress. The second half of the year will also be important for tracking the finalization of tenders for the second-generation small-batch satellites of the "Qianfan" constellation, as well as the actual commencement and equipment procurement progress for low-altitude economy infrastructure projects across various regions.
The Huabao General Aviation ETF (159231) and its feeder funds (Class A: 024766; Class C: 024767) track an index comprehensively covering 50 aerospace and aviation constituent stocks. This includes hot sectors like the low-altitude economy, commercial aerospace, satellite navigation, large aircraft, drones, and military aircraft. The ETF has over 90% exposure to low-altitude economy concepts, over 60% to commercial aerospace, and over 45% to satellite navigation concepts, making it a tool for one-click allocation to China's aerospace industry chain.
Investors should note that the Huabao General Aviation ETF passively tracks the CNI General Aviation Industry Index. The index's historical backtested performance is not indicative of its future results. Constituent stocks are listed for illustrative purposes only; descriptions are not investment advice and do not represent the holdings or trading动向 of the fund manager. The fund manager assesses this fund's risk level as R3-Medium Risk, suitable for Balanced (C3) and above investors. Any information presented is for reference only, and investors are responsible for their own investment decisions. Fund investment carries risk; past performance is not indicative of future results, and the performance of other funds managed by the manager does not guarantee this fund's future performance.