The aerospace and aviation sector showed signs of recovery on July 21st. Raytron Technology Co., Ltd. surged 17%, while Aerod gained over 6%. Other stocks like Newcapec Electronics Co., Ltd., Yingliu Co., Ltd., and Zhongfu Shenying Carbon Fiber Co., Ltd. also rose more than 4%. 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 on-market price climb 1.93% from a recent stage low. Over the preceding 10 trading days, the fund had already accumulated approximately 17.53 million yuan in net inflows.

Analysis from Huayuan Securities points out that capital market activity for aerospace IPOs is accelerating. Several commercial aerospace companies have now initiated IPO processes. For instance, LandSpace has re-entered the "under inquiry" status on the STAR Market, and Zhongke Aerospace's IPO is also progressing. On June 29th, the Zhuque-3 reusable rocket's second test vehicle successfully completed a static fire test at the Dongfeng Commercial Aerospace Innovation Test Zone, marking the completion of all key ground verification work. Drawing a parallel to the timeline of the first test vehicle (static fire on October 20, 2025, and launch on December 3, 2025, a 44-day gap), it is anticipated that the second test flight could potentially be reattempted before mid-August. A successful flight would signify China's entry into a phase of having "two legs to stand on" in reusable rocket technology, potentially bringing batch launches closer to reality.

Key Investment Vehicle

The Huabao General Aviation ETF (159231) and its feeder funds (Class A: 024766; Class C: 024767) track a benchmark index that comprehensively covers 50 constituent stocks in the aerospace and aviation sector. This includes hot themes such as the low-altitude economy, commercial aerospace, satellite navigation, large aircraft, drones, and military aircraft. Notably, the fund's exposure to the low-altitude economy concept exceeds 90%, to commercial aerospace is over 60%, and to satellite navigation surpasses 45%, making it a strategic tool for one-stop allocation to China's aerospace industrial chain.

Important Investor Considerations

Recent market volatility may be significant. Short-term price movements are not indicative of future performance, and fund investments may incur losses. Investors must make rational investment decisions based on their own financial situation and risk tolerance, paying close attention to position sizing and risk management.

Data Source: Shanghai & Shenzhen Stock Exchanges, iFind. The related concept indices are 886067.TI (Low-altitude Economy), 886078.TI (Commercial Aerospace), and 885574.TI (Satellite Navigation). The concept exposure percentages are calculated as the aggregate weight of common constituents between the General Aviation Index and the aforementioned concept indices, data as of June 30, 2026.

Fee Structure Details

The Huabao General Aviation ETF does not charge a sales service fee. Subscription and redemption agents may charge a commission of up to 0.5%. On-market trading fees are subject to the rates charged by securities firms. For the Huabao General Aviation ETF Feeder Fund Class A: The subscription fee is 1% for amounts below 1 million yuan, 0.6% for 1-2 million yuan, and a flat fee of 1,000 yuan per transaction for amounts above 2 million yuan. The redemption fee is 1.5% for holdings under 7 days and 0% for holdings over 7 days. No sales service fee is charged. For the Huabao General Aviation ETF Feeder Fund Class C: The redemption fee is 1.5% for holdings under 7 days and 0% for holdings over 7 days. An annual sales service fee of 0.25% applies.

Institutional reference viewpoint source: Huayuan Securities report "Market Adjustment, Focus on Incremental Tracks in Commercial Aerospace".

Risk Disclosure

The Huabao General Aviation ETF passively tracks the SZSE General Aviation Industry Index (Base Date: June 29, 2012; Release Date: December 28, 2012). The index constituent composition is adjusted according to its compilation rules, and its back-tested historical performance does not indicate future index performance. The mention of index constituents in this article is for illustrative purposes only; individual stock descriptions are not investment advice of any form and do not represent the holdings or trading intentions of any fund managed by the fund manager. The fund manager assesses this fund's risk rating as R3 - Medium Risk, suitable for Balanced (C3) and higher risk profile investors. The appropriateness matching opinion is subject to the sales institution. Any information appearing in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, or any form of expression) is for reference only. Investors are solely responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice to readers and no responsibility is accepted for any direct or indirect losses arising from the use of this content. Fund investment carries risks. The past performance of a fund is not indicative of its future results. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Fund investment should be approached with caution.