ZQ-3 Y1 rocket took off for maiden flight from the Dongfeng Commercial Aerospace Innovation Test Zone at noon time on December 3, 2025. Photo: courtesy of LandSpace

China's commercial aerospace stocks continued their upward trajectory on Thursday, with shares of companies including Anhui Shenjian New Materials Co, Chongqing Zaisheng Technology Corp, Create Technology & Science Co, and Shandong Longji Machinery Co all rising by the daily limit.

The buoyant market sentiment not only reflects investors' strong enthusiasm for the commercial aerospace sector but also signals their firm confidence in its future. This surge is driven by the robust momentum of China's commercial aerospace industry, which is rapidly rising and steadily gaining a foothold on the international stage, aligning with China's need to upgrade its economy toward high-end manufacturing and strategic emerging industries.

For starters, solid industrial progress underpins market confidence. According to the Securities Times, China has carried out nearly 90 aerospace launches this year, setting a new record and signaling that the industry has moved from a phase of technological accumulation to one of large‑scale operations. Breakthroughs in rocket carrying capacity, the build‑out of mass satellite production, and lower launch costs together provide a strong foundation for the sector's wider adoption.

Meanwhile, supportive policy design is playing a particularly critical role. In November, the China National Space Administration released an action plan to promote the high-quality and safe development of commercial space from 2025 to 2027. The plan integrates commercial space into the country's overall aerospace development framework, aiming for high-quality development of the sector by 2027, according to the Xinhua News Agency. This marks the clear recognition and strong support for commercial aerospace as a key component in building China into an aerospace powerhouse and cultivating new quality productive forces at the strategic national level.

Also, the Communist Party of China Central Committee's recommendations for formulating the 15th Five-Year Plan (2026-30) emphasized working faster to boost China's strength in aerospace, reinforcing the commitment to industrial development.

In this supportive context, China's commercial aerospace industry entered a fast development track in 2024, as its market scale is estimated to have exceeded 2.3 trillion yuan ($314 billion). This expansion was fueled by explosive downstream demand, such as in the satellite internet sector, alongside rapid technological iteration and cost reduction in rockets and satellites. 

Innovations across the industrial chain - including reusable rockets, new launch sites, and advanced satellite technologies - are powering vigorous growth. Chinese firms, leveraging their strengths in research efficiency and cost control, are poised to offer increasingly competitive products and services internationally. The positive feedback from the capital market is further empowering this virtuous cycle, injecting valuable resources for companies to increase research and development efforts and expand into overseas markets.

A foundation of international cooperation provides a significant advantage. China's commercial aerospace push onto the global stage builds upon decades of solid international cooperation within the national aerospace program. As early as the 1990s, Chinese rockets successfully launched commercial satellites for international clients. 

In the 21st century, particularly under the Belt and Road Initiative, cooperation has deepened and become more multidimensional. These state-led projects have accumulated valuable experience in international project management and technical standards alignment, while also establishing China's reputation as a reliable aerospace partner worldwide. This legacy lays a crucial foundation of trust and opens communication channels for commercial companies in their international endeavors.

From technology accumulation to market application, and from domestic cultivation to global expansion, the rise of China's commercial aerospace sector mirrors the broader ascent of the country's aerospace industry toward higher value chains. As the policy framework improves, market demand grows, and international cooperation deepens, China's commercial aerospace sector is poised to play an increasingly significant role in the global space economy.