Commercial aerospace received a major boost today (August 19) with the 07:35 launch of LandSpace's Zhuque-3 (遥二) carrier rocket from the Dongfeng Commercial Aerospace Innovation Test Zone. The mission achieved two critical objectives: the second stage successfully delivered the "Honghu-03" satellite into its designated orbit, with a one-time maximum orbital payload capacity measured at 14.2 tons, and the first stage executed a precise vertical soft landing using landing legs at the Minqin recovery site in Gansu Province, approximately 390 kilometers from the launch facility, according to LandSpace.

This marks China's first-ever land recovery of an orbital-class launch vehicle's first stage and the nation's inaugural landing-leg vertical recovery method. Combined with the July 10 sea-based net recovery of the Long March 10B, China has now become the world's first country to master both rocket recovery technical routes—sea-based net recovery and land-based landing legs—simultaneously.

Why This Breakthrough Matters

The road to success has been arduous. During the initial flight of the Zhuque-3 (遥一) on December 3, 2025, although orbital insertion was successful, the first-stage recovery phase failed when an abnormal terminal engine combustion issue caused the landing point to deviate approximately 40 meters from the recovery platform center. LandSpace then implemented three targeted improvements over eight months: upgrading the first-stage engine to the Tianque-12B model, compressing ignition response latency from 0.3 seconds to under 0.05 seconds; introducing real-time wind field correction algorithms and propellant settling control logic to improve low-altitude wind resistance; and optimizing the tail compartment thermal protection structure to address re-entry high-temperature ablation issues.

The Zhuque-3 follows the "liquid oxygen methane propellant + stainless steel body + landing leg vertical recovery" technical path, benchmarking against the technology direction of SpaceX's Falcon 9. Stainless steel costs roughly one-fifth that of aluminum alloy materials while offering superior high-temperature resistance and better reusability and maintenance characteristics. The success of the second flight demonstrates that this technical route has been systematically validated as feasible at an engineering level. Longhua Securities previously noted that a successful recovery would write an entirely new chapter in China's private commercial reusable launch vehicle history, potentially accelerating the global space race and driving demand growth across the related industrial chain.

Commercial and Industrial Implications

The cost-reduction logic is compelling: in expendable liquid rockets, fuel accounts for only 1-3% of launch costs, while the first stage represents approximately 70% of the total rocket cost. First-stage reuse can dramatically dilute these expenses—brokerage estimates suggest that once reusable technology matures, launch costs could drop by 60-80%, while launch turnaround times would also shrink substantially, since manufacturing a new first stage takes months whereas reuse significantly accelerates the cycle.

On the demand side, the timing is critical. The GW constellation (with 195 satellites in orbit) and Qianfan constellation (with 238 satellites in orbit) plan for tens of thousands of satellites, yet current completion rates stand at only about 1%. Network assembly efficiency depends heavily on high-frequency, low-cost commercial launches. LandSpace has already signed formal launch service contracts with China SatNet and Shanghai Spacecom Satellite Technology, has been selected as a core supplier, and has won a contract for the "one rocket, 18 satellites" launch service with the latter.

Validation data from the first half of 2026 shows approximately 44 launches completed in China, placing about 223 satellites into orbit, of which roughly 30 were commercial launches carrying 206 commercial satellites—commercial aerospace has clearly become the primary launch force. Regarding future plans, according to Science and Technology Innovation Board Daily, LandSpace officials have confirmed the company intends to conduct a recovered rocket body reflight test within six months, establishing a complete "launch-recover-inspect-reuse" closed loop. The company remains committed to the liquid oxygen methane recoverable route, continuously refining high-frequency reuse capabilities to pave the way for low-cost, large-scale commercial launches.

As China's aerospace ambitions take flight, the General Aviation ETF Huabao (159231) and its feeder funds (Class A: 024766; Class C: 024767) track an index comprehensively covering 50 aerospace constituent stocks across hot sectors including low-altitude economy, commercial aerospace, satellite navigation, large aircraft, drones, and military aircraft. The index features over 90% low-altitude economy exposure, more than 60% commercial aerospace content, and over 45% satellite navigation coverage, positioning it as a one-stop tool for accessing China's aerospace industry chain. Market volatility may be significant in the near term, and short-term fluctuations do not predict future performance. Fund investing carries potential losses. Investors should make decisions based on their own financial conditions and risk tolerance, paying close attention to position sizing and risk management. Data sources: Shanghai and Shenzhen stock exchanges, iFind, related concepts 886067.TI (Low-Altitude Economy), 886078.TI (Commercial Aerospace), 885574.TI (Satellite Navigation). Concept concentrations represent the combined weights of stocks common to the General Aviation Index and these concept indices as of June 30, 2026. Fee disclosures: The General Aviation ETF charges no sales service fee, with subscription-redemption agents permitted to charge commissions up to 0.5%. On-exchange trading fees are subject to actual securities company charges. For the General Aviation ETF Huabao Feeder A, subscription fees are: 1,000 RMB per transaction above 2 million RMB; 0.6% for 100-200 million RMB; 1% for amounts below 1 million RMB. Redemption fees: 1.5% for holdings under 7 days; 0% for 7 days or more. No sales service fee applies. For Feeder C, redemption fees are 1.5% under 7 days and 0% thereafter, with an annual sales service fee of 0.25%. Institutional reference views are sourced from Longhua Securities, August 10, 2026, "Zhuque-3 Reflight Countdown: Opportunities in the Commercial Aerospace Industry Chain." Risk warning: The General Aviation ETF Huabao passively tracks the Guozheng General Aviation Industry Index, with a base date of June 29, 2012, and a release date of December 28, 2012. Index constituent stocks adjust according to compilation rules, and backtested historical performance does not predict future index returns. Index constituents shown here are for display purposes only, and individual stock descriptions do not constitute investment advice of any form, nor do they represent the holdings or trading activities of any fund under the manager. The fund manager assesses this fund's risk level as R3-medium risk, suitable for balanced (C3) and above investors; suitability matching opinions should be confirmed with sales institutions. Any information appearing herein (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, or expressions of any form) serves as reference only. Investors bear full responsibility for their independent investment decisions. Furthermore, any views, analyses, or forecasts in this article do not constitute investment advice to readers of any form, nor shall liability attach for direct or indirect losses arising from use of this content. Fund investment carries risks; past fund performance does not represent future results, and the performance of other funds managed by the fund manager does not constitute a guarantee of fund performance. Invest in funds with caution.