China Science and Space IPO application accepted, Arrow 2 first flight successful, Aerospace ETF Huaxia (159227) has a commercial space content of up to 69%

On March 31, the three major A-share index trends diverged: the Shanghai Composite fell 0.8%, the Shenzhen Component fell 1.81%, and the ChiNext Index fell 2.7%. The Huaxia Aviation and Aerospace ETF (159227) fell 0.4%, with trading volume reaching RMB 349 million, and a turnover rate of 9.07%. Trading remained active. Among its constituent stocks, Sanjiao Defense rose 4.73%, Hailan Hsin rose 2.74%, Shanghai Hanxun rose 2.39%, AVIC Shenyang Aircraft rose 2.04%, and aerospace electronics, United General Aviation, Guoboda Electronics, and others also moved up in tandem. From a capital-flow perspective, over the past 20 trading days, the Huaxia Aviation and Aerospace ETF (159227) saw net inflows of RMB 601 million, with the latest size at RMB 3.79 billion, maintaining the No. 1 position among its peers.

On the news front, on March 31, Zhongke Aerospace’s Sci-Tech Innovation Board IPO application was accepted by the Shanghai Stock Exchange. This indicates that the commercial rocket leader is accelerating its path toward commercialization of capital. Recently, the LiJian II medium-to-large liquid rocket independently developed by Zhongke Aerospace successfully completed its maiden flight, precisely delivering payloads such as the Chuizhou Chuyi sample spacecraft into their planned orbit. As a result, the total number of satellites successfully inserted into orbit by Zhongke Aerospace increased to 86, and it also achieved the launch of the Chuizhou Chuyi sample spacecraft. The total mass of payloads sent into space has now approached 16 tons.

According to Zhejiang Securities, commercial aerospace is a strategic high ground and a new-quality productive force. It is not only a key commanding height for great-power competition to seize scarce space resources and to build autonomous and controllable space infrastructure, but also has broad market potential and deep industrial value. It is driving the space industry to transition from state-led to full-scale commercialization, forming a virtuous cycle in which technology, costs, and the market mutually reinforce each other. At present, policies, industry, and capital are forming a strong resonance. In 2026, it is expected to become a critical first year for China’s commercial aerospace to achieve major development. The policy level continues to intensify its布局 and capital financing and investment activity remains high, focusing on core tracks. State-owned “national team” enterprises and private companies are working together to generate a complementary competitive landscape, while industrial technology and production capacity continue to make breakthroughs.

Huaxia Aviation and Aerospace ETF (159227) tracks the Guozheng Aerospace and Aviation Industry Index closely. Commercial aerospace content is as high as 69%, making it the leading ETF in the whole market for “commercial aerospace purity.” It comprehensively covers leading companies across the entire industrial chain such as rocket launches, satellite manufacturing, and aerospace electronics. It includes key holdings such as Aerospace Development, China Satellite, Aerospace Electronics, AVIC Avionics, among others, perfectly aligning with the strategic direction of “space and air integration.” With the proportion of the Shenyang?—No. Wait: 申万一级军工行业 allocation is as high as 98.75%, it is the index with the highest “military-industry purity” in the whole market. The product’s liquidity is sufficient, and it ranks among the top in terms of trading value among similar ETFs. It offers a one-click way to tap into multiple core opportunities, including AI + aerospace, large-scale launches for commercial aerospace, and space computing power—serving as a convenient core tool for capturing the high-level momentum in the commercial aerospace high-prosperity track.

Jingji Daily News