China Daily | A-share aerospace stocks surge on SpaceX IPO buzz

While the global capital market was recently abuzz with SpaceX's record-breaking IPO, the Chinese commercial aerospace sector will ride the tide with a clearer market valuation model and strong government support, said experts on Monday.

Following the 0.88 percent average gain on Friday, when SpaceX's price soared 19 percent on its first day on the Nasdaq, A-share commercial aerospace companies posted a further 2.96 percent increase on Monday, with the benchmark Shanghai Composite Index closing 1.61 percent higher.

Experts from Founder Securities said SpaceX's debut has provided the global commercial aerospace industry with a mainstream and highly representative open market valuation model. A-share market sentiment will be bolstered, helping investors regard commercial aerospace as a technology industry offering greater growth potential.

The price-to-sales ratio is now around eightfold to tenfold for A-share commercial aerospace companies, while SpaceX's implied price-to-sales ratio is as high as 65 to 100 times, said Tian Lihui, a finance professor at Nankai University.

The worldwide enthusiasm for SpaceX will help accelerate the deeper revaluation and restructuring of the Chinese A-share commercial aerospace sector, directing more capital to industry leaders possessing core technologies and large-scale operations, Tian said.

A-share commercial aerospace firms have seen their share prices climb about 6 percent since the beginning of the year. At least four commercial aerospace-based exchange-traded funds were up by over 5 percent on Friday.

The industry is being propelled by the latest policies introduced in China. This year's Government Work Report has defined for the first time that aerospace is among the country's emerging pillar industries.

The Shanghai Stock Exchange issued on Dec 26 the listing guidelines for the commercial rocket industry. Commercial rocket companies that are at a critical stage of large-scale commercialization are allowed to list on the STAR Market under the fifth set of listing standards.

This means that this year has become a policy window period for the sector to file IPOs.

Public figures show that two Chinese companies — LandSpace and CAS Space — have had their IPO applications to the STAR Market accepted. Another eight companies have initiated their IPO application process.

CCID Media, a division of the China Center for Information Industry Development, said China's commercial aerospace market size reached 2.83 trillion yuan ($418.8 billion) in 2025, up 21.7 percent year-on-year. Its size is expected to further expand to 3.5 trillion yuan this year, with the annual growth rate estimated at over 20 percent.

Experts from Sealand Securities said the commercial aerospace sector is an integral part showcasing China's new quality productive forces, standing in a strategic arena of global competition. It is accelerating the transformation from technology validation to large-scale application. Investors are thus recommended to closely monitor progress in rocket reusability tests, barriers in satellite manufacturing, satellite operation, management, maintenance and ground applications, they said.

Fu Chenshuo, chief analyst of defense and aerospace at CITIC Securities, said the commercial aerospace sector will see its performance further pick up as more private commercial rocket companies participate in the country's major constellation networks. Launch costs will also decline significantly as recovery technology matures, which can also be translated into exponential growth. A broader industry outlook on space-based computing power should not be overlooked.

Investors should focus on the core assets in the industry, such as reusable rockets — including the 3D printing supply chain, satellites, terminals and the SpaceX supply chain, he added.

https://www.chinadaily.com.cn/a/202606/16/WS6a30a761a310986e2b4602c6.html