This year, the low-altitude economy has received a stream of favorable news from both policy and industry perspectives. The General Office of the Guangdong Provincial Government recently issued several measures to support the high-quality development of the low-altitude economy. These measures outline sixteen specific actions, including accelerating the tackling of key core technologies, speeding up the construction of industrial innovation platforms, fostering new low-altitude consumer business models, and enhancing support for low-altitude financial services.

Among the measures, there is a focus on strengthening support for low-altitude financial services. It aims to guide social capital towards key core areas of the low-altitude economy through provincial industrial development investment funds in various forms, concentrating on early-stage, small-scale, long-term, and hard technology investments. The plan encourages banks, securities, venture capital institutions, and other financial entities to provide comprehensive financial services throughout the entire lifecycle for low-altitude economy enterprises, thereby enriching the range of available financial products. It also emphasizes increasing policy support for loan interest subsidies and risk compensation for low-altitude economic ventures, and enhancing efforts to cultivate enterprises for domestic and overseas listings.

The measures further support innovative transportation methods such as low-altitude passenger transport. Specifically, they encourage Guangzhou, Shenzhen, and Zhuhai to take the lead in cautiously establishing city and inter-city low-altitude passenger routes, while exploring the formulation of low-altitude air traffic rules and logistics delivery systems for drones across the Greater Bay Area. This year, various regions across the country are actively intensifying their investments in the low-altitude economy. According to forecasts from the Civil Aviation Administration of China, the market size of the low-altitude economy is expected to reach 1.5 trillion yuan by 2025 and possibly 3.5 trillion yuan by 2035. Many regions have rolled out supportive policies for low-altitude economic development, including special bonds and ultra-long-term special treasury bonds.

On October 17, the General Office of the Anhui Provincial Government and the General Office of the Henan Provincial Government jointly released the "Implementation Plan for Cooperative Development in Inter-provincial Adjacent Areas," proposing 18 initiatives focused on industrial innovation and collaboration. This plan emphasizes support for neighboring regions to leverage their clear airspace advantages to develop general aviation and aircraft assembly and maintenance industries, thereby creating a low-altitude economic industry cluster and promoting regional industrial synergy. Recently, the Tianhe District of Guangzhou issued "Several Policy Measures to Accelerate the High-Quality Development of the Low-Altitude Economy and Aerospace," which includes 11 support measures covering infrastructure, industrial innovation, and application scenarios. Companies obtaining operational certificates from the Civil Aviation Administration for large manned/unmanned drones will receive support of 1 million yuan/800,000 yuan, with an annual maximum subsidy of 20 million yuan for each enterprise, effective until the end of 2027.

In terms of industry dynamics, from October 22 to 25, EHang Intelligent showcased at the 2nd China-Portuguese Speaking Countries Economic and Trade Expo, highlighting the rich application scenarios for drones in Latin American countries, where governments of nations like Brazil and Portugal show a keen interest in low-altitude economy products. The company plans to introduce China's low-altitude economic experience to Portuguese-speaking countries through technology cooperation to expand its international market and promote the implementation of low-altitude transportation solutions. On October 24, Air China announced that its subsidiary, GuoYuan Technology, has established a joint venture with Zhejiang Maritime Service Company with a registered capital of 10 million yuan (GuoYuan Technology holds 60% stake) to engage in "low-altitude economy + maritime services" such as maritime drone transportation, vessel supply, and digital platform building to enhance its comprehensive competitive edge.

Under the backdrop of policy support and ongoing industrial upgrades, investment opportunities in low-altitude economy-related concept sectors are becoming apparent. Guotai Junan Securities notes that in recent years, policies related to the low-altitude economy have gradually been refined, indicating a maturation of the industry. The low-altitude economy essentially reflects the efficient development of airspace resources and the synergistic cooperation of three-dimensional industries. With the continuous expansion of the industry scale, the investment value of enterprises laying out related industry chains is becoming evident. Southwest Securities points out that national strategies focus on the new track of the low-altitude economy, with regions subsequently releasing guiding policies for its development. From the perspective of application scenarios, low-altitude logistics and low-altitude cultural tourism lead the way, while other fields are also actively explored. Major eVTOL manufacturers are starting to receive orders, indicating a clear trend towards large-scale development within the industry chain. Kaisheng Securities states that the low-altitude economy has begun to witness a vertical rollout from the macro level (national-level industry planning) to the meso-level (local subsidies) and down to the micro-level (infrastructure bidding, application scenario development), and it recommends keeping an eye on the subsequent market trends in low-altitude economy-related sectors.

Relevant concept stocks include: AVICHINA (02357): The only flagship company on the Hong Kong capital market that focuses on aviation high-tech military and civilian products and services. It holds stakes in four A-share listed companies: AVIC Harbin Aircraft, Hongdu Aviation, AVIC Avionics, and AVIC Optical. Its main business encompasses helicopters, trainer aircraft, general aviation, airborne systems and components, and aviation engineering services.

ZTE (00763): ZTE has long been committed to advancing the standards, technology research and development, and ecosystem building of integrated sensing and intelligent computing technology. Recently, ZTE, in collaboration with industry partners, has completed the deployment of a 5G-A sensing system pilot project by Xingshan Lake, with low-altitude sensing detection data also presented on a low-altitude flight service platform in Chengdu, expediting business progress.

XPENG-W (09868): XPENG HuiTian's new brand, HuiTian ARIDGE, recently announced the opening of China's first comprehensive low-altitude flying camp in Guangzhou University Town, planning to establish the world's first "6S" store for flying vehicles — "SkyPort Fei Hong Kong," marking a critical phase in the transformation of China's low-altitude economy from technological exploration to application scene implementation.

GAC GROUP (02238): On July 3, GAC's first composite wing flying car, the GOVY AirJet, successfully completed its maiden flight. The GOVY AirJet incorporates multiple advanced technologies that provide outstanding performance. It adopts an eight-rotor design with a dual-channel composite wing configuration, offering the efficiency of fixed-wing cruising while maintaining the versatility of vertical takeoff and landing without needing a runway, suitable for the complex urban takeoff and landing environment.