From AI to aerospace: China meme rocket shares take off in race with US
Investors scramble for opportunities to maintain market momentum after the AI frenzy shows signs of losing steam
Chinese stock investors have found a new favourite that could possibly take over the artificial intelligence trade, scooping up so-called rocket shares on bets that commercial aerospace will become the next battleground in the rivalry between Beijing and Washington.
A gauge of commercial aerospace companies trading on the Shanghai and Shenzhen exchanges has risen about 10 per cent this year, adding to a 76 per cent increase in 2025, according to data from financial services provider Shanghai DZH.
The gauge’s year-to-date return has outpaced the 2 per cent gain in the benchmark CSI 300 Index. Some of the big gainers include China Spacesat and Hunan Aerospace Huanyu Communication Technology.
“With policy support, the cost of rocket launches in China is expected to come down and even match that of SpaceX,” said Hou Bin, an analyst at Great Wall Securities. “We are positive on an acceleration of domestic substitution in commercial aerospace going forward. That will create investment opportunities in a number of downstream industries.”
Fuelling the enthusiasm is investors’ belief that China will go all out to catch up with the US, where Elon Musk’s SpaceX is taking the lead in reusable rocket technology and lunar ambitions. China has made aerospace one of its main priorities in the latest five-year development plan, undertaking a series of tests for reusable rockets to show its determination that the country will not be left behind in the race for cutting-edge technologies.