Supported by multiple factors including fundamental recovery, technological upgrades, and sustained capital investment, a turning point for the commercial space sector may be drawing closer. Consequently, despite recent adjustments in the sector's market performance, the pace of capital deployment into this high-growth segment has not slowed. As the only ETF currently tracking the CSI All Share Aerospace Index, the Aerospace ETF Huatai-PineBridge (563380) has seen net capital inflows on 9 trading days so far this month, with cumulative net inflows for the year reaching 11.06 billion yuan. This sustained inflow has driven a gradual increase in the product's share count and scale, which have recently reached approximately 1.049 billion shares and 9.67 billion yuan respectively, representing increases of 619% and 468% since the start of the year, indicating significant liquidity advantages.

From a fundamental perspective, the ongoing recovery in the performance of leading domestic and international companies may, to some extent, confirm an overall improvement in the aerospace industry chain's health, providing crucial support for a valuation rebound in the sector. In overseas markets, GE Aerospace's impressive Q2 2026 earnings report released yesterday showed adjusted revenue rising 24% year-over-year to $12.63 billion, with adjusted earnings per share reaching $2.02, significantly surpassing market expectations for core operational metrics. The domestic sector is also experiencing a profit recovery. On July 12, a leading domestic company issued a positive earnings forecast for the first half of 2026, indicating a successful turnaround to profitability and clarifying the improving profit trend within the industry.

From an industrial development standpoint, technological R&D in China's commercial space sector is advancing on multiple fronts, with both state-owned and private enterprises achieving breakthroughs. Following the successful test flight of the Long March 10B on July 10, which marked a state-owned achievement in reusable rocket technology, launch plans for private rockets are also intensifying. The "Gravity-1" Y4 carrier rocket, assembled at the Haiyang Oriental Space Port, is scheduled to be transported by the "Oriental Space Port" launch vessel and execute a sea-based satellite launch mission in the eastern waters off Shanghai on July 22. This represents another mission for the world's largest solid-fuel carrier rocket, highlighting the continuous progress being made by private space companies in payload capacity and launch frequency.

From a capital markets perspective, continued investment from domestic and international sources is expected to expand the medium to long-term growth potential of the commercial space industry. According to CVSource data, by the end of June, at least 15 Chinese commercial space companies had initiated IPO processes, indicating an acceleration in the capitalization of quality assets. Among them, LandSpace's IPO application on the STAR Market has entered the inquiry stage, aiming to raise 7.5 billion yuan, while CAS Space is concurrently advancing its own STAR Market listing, targeting 4.18 billion yuan. Overseas, on July 15, South Korea's Financial Services Commission announced an expansion of the national public growth fund, increasing its total size from 150 trillion won to 200 trillion won, and included aerospace as a key emerging strategic sector for support, underscoring the industry's global strategic importance.

As one of the representative products offering a highly concentrated exposure to the aerospace and defense segment of the military-industrial complex, the Aerospace ETF Huatai-PineBridge (563380) has a portfolio weight of approximately 96.82% in national defense and military stocks. It broadly covers core segments of the industrial chain such as aviation equipment and aerospace equipment, which together account for about 77%, and extends into strategic emerging industries like large aircraft and the low-altitude economy. This positioning may help investors gain exposure to multiple core opportunities, including AI+space, reusable rockets, space-based computing power, and low-earth orbit satellite internet, making it a potentially convenient core tool for accessing the high-growth commercial space sector.

As one of China's first ETF managers, Huatai-PineBridge Fund has been dedicated to index investing for over 19 years, providing investors with transparent, convenient, and low-cost index tools such as the Huatai-PineBridge CSI 300 ETF (510300) and the Huatai-PineBridge A500 ETF (563360). As of the end of March 2026, the company's ETF products 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 surpassing two hundred billion yuan during that period.