On July 10th, a significant technological breakthrough in China's commercial aerospace sector provided a direct boost to related A-share stocks. The Long March 10B carrier rocket successfully completed a full-mission profile involving launch and a pioneering sea-based net recovery. This achievement marked not only the first controlled recovery of a first-stage rocket booster in China but also a world-first in sea-based net recovery technology, signifying China's entry into the global leading ranks for reusable aerospace technology. Reusable rockets are central to achieving scale and cost-effectiveness in commercial aerospace, and the mission's success effectively validates the long-term viability of the industry's development model.

Following this major technical breakthrough, positive earnings developments have further bolstered the sector's outlook. Yesterday, a leading company in the field released its H1 2026 earnings forecast, indicating a successful turnaround to profitability. The company expects net profit attributable to shareholders to be in the range of 30.5 million to 36.5 million yuan, with non-GAAP net profit between 26.7 million and 32 million yuan. A leading player moving from a sustained investment and loss cycle into profitability suggests the domestic commercial aerospace industry may be transitioning from the intensive R&D phase into a period of commercial realization, potentially solidifying the sector's investment value.

Despite a noticeable pullback in the commercial aerospace sector during the morning session today, the concurrent support from technological progress and fundamental improvement suggests the allocation value of related ETFs may still warrant attention. As the only ETF currently tracking the CSI All Share Aerospace & Aviation Index in the market, the Huatai-PineBridge Aerospace & Aviation ETF (563380) has seen a significant increase in trading activity. Its single-day turnover last Friday reached 244 million yuan, hitting a peak not seen since January 26th of this year. From a capital flow perspective, the product has experienced net inflows for five consecutive trading days, with year-to-date cumulative net inflows reaching 1.091 billion yuan. This has propelled both its latest fund share units and net asset value to record highs since inception, reaching 1.034 billion units and 1.074 billion yuan respectively, representing increases of 608% and 531% from the start of the year.

The pace of capital market activity in commercial aerospace is also accelerating noticeably. Since the Science and Technology Innovation Board (STAR Market) included commercial aerospace in its fifth set of listing standards in 2025, hardcore technical metrics such as the successful orbital insertion of reusable large rockets have been established as core listing thresholds. This deep integration of IPO eligibility with technological prowess has effectively opened up domestic financing channels for commercial rocket companies. According to CVSource data, by the end of June this year, at least 15 commercial aerospace companies had initiated IPO processes. The accelerated listing of high-quality industry assets on capital markets is expected to continuously drive industrial expansion and upgrading.

As a representative product offering high-purity exposure to the aerospace and aviation segment within the broader defense sector, the Huatai-PineBridge Aerospace & Aviation ETF (563380) has a weighting of approximately 96.82% in defense-related stocks within its index. It provides broad coverage of core industry chain segments like Aircraft Equipment II and Spacecraft Equipment II, which together account for about 77% of the portfolio, and extends into strategic emerging industries such as large aircraft and the low-altitude economy. This positioning may help investors gain exposure to multiple core opportunities including AI + aerospace, reusable rockets, space-based computing power, and low-earth orbit satellite internet, making it a potential core tool for conveniently accessing the high-growth commercial aerospace sector.

Huatai-PineBridge Fund, as one of China's first ETF managers, has been dedicated to the index investment field for over 19 years, creating transparent, convenient, and low-cost index tools for investors 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 ETFs had generated cumulative profits exceeding 223.4 billion yuan for holders over the preceding two years, making it one of only three public fund management companies in the A-share market to achieve cumulative profits over 200 billion yuan during that period.