Reusable Rocket Breakthrough: China’s Commercial Space Market Poised for Fivefold Growth

China just achieved a major milestone in rocket reusability—and the market is losing its mind.

On February 11, the nation successfully conducted critical tests of the Long March 10 (Changzheng Shihao 长征十号) carrier rocket system at the Wenchang Spacecraft Launch Site.

Both the first-stage rocket booster and the Mengzhou (梦舟) manned spacecraft’s reentry capsule executed controlled, safe splashdowns in designated sea areas.

This wasn’t just a win for aerospace engineers—it triggered a market frenzy that reshaped the entire commercial space sector.

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Commercial Aerospace Stocks Explode on Reusability News

The market response was immediate and aggressive.

On Thursday, stocks across the commercial aerospace sector experienced significant volatility, with several hitting the 20% daily “limit up” ceiling—the maximum price movement allowed by Chinese exchanges in a single trading day.

Top performers included:

• Capital Online (Shoudu Zaixian 首都在线) — hit the 20% limit up
• UCloud (Youkede 优刻得) — hit the 20% limit up
• Tianyi New Materials (Tianyi Xincai 天宜新材) — rose over 13%
• ASR Microelectronics (Aojie Keji 翱捷科技) — rose over 13%
• Yingliu Shell (Yingliu Guofen 应流股份) — reached daily price limits
• Sinoma Science & Technology (Zhongcai Keji 中材科技) — reached daily price limits

Why the surge?

Because reusable rockets fundamentally change the economics of space.

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What Makes This Breakthrough So Important

Rong Yi (容易), a representative from the China Aerospace Science and Technology Corporation (Zhongguo Hangtian Keji Jituan 中国航天科技集团), confirmed that the test achieved all intended objectives.

This represents a major breakthrough for China in the critical technology required for the recovery of reusable launch vehicles.

Huatai Securities (Huatai Zhengquan 华泰证券) called it a vital phase in China’s manned lunar exploration project and a landmark for the Long March 10 series’ reusability.

Translation: China just proved it can reuse rockets reliably.

And that’s a game-changer.

Progress in reusable rockets serves as a major catalyst for the commercial space sector and is essential for accelerating the development of the aerospace industry and building a “space power.”

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The Cost Advantage Nobody’s Talking About (Yet)

Here’s where it gets interesting for satellite operators and launch providers.

In typical rocket hardware, the first-stage booster accounts for roughly 77.8% of the total cost.

Reusable rockets reclaim these boosters—plus fairings—dramatically lowering costs per launch.

Since launch costs represent about 30% of a satellite company’s total expenses, the savings from reusability create a cascading effect:

• Lower barrier to entry for new satellite operators
• Improved cash flow for existing satellite companies
• Increased production capacity across the industry
• More resources for product optimization

Translation: The entire commercial space ecosystem becomes more efficient and profitable.

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Leveraged Funds Are Betting Big on This Trend

Professional investors aren’t waiting around.

Data from East Money (Dongfang Caifu 东方财富) Choice shows that leveraged funds have aggressively targeted commercial aerospace stocks throughout 2024.

The top financed stocks include:

• Sunway Communication (Xinwei Tongxin 信维通信) — ¥1.9 billion RMB ($264.1 million USD) in net financing purchases
• Lens Technology (Lansi Keji 蓝思科技) — ¥1.3 billion RMB ($180.7 million USD) in net financing purchases

Additional stocks with significant institutional interest include:

• Goldwind (Jinfeng Keji 金风科技)
• AVIC Optoelectronics (Zhonghang Guangdian 中航光电)
• Loongson Technology (Longxin Zhongke 龙芯中科)
• Taiyin Electromechanical (Tianyin Jidian 天银机电)
• Wuhan Guide Infrared (Gaode Hongwai 高德红外)
• Tri-Ring Strategy (Sanjiao Fangwu 三角防务)
• Kuang-Chi Technologies (Guangqi Keji 光启技术)
• CETC Digital (C Dianke C电科)
• HaiLanXin (Hailanxin 海兰信)
• AVIC Xi’an Aircraft Industry (Zhonghang Xifei 中航西飞)
• PowerChina (Zhongguo Dianjian 中国电建)

Each of these companies is seeing net financing purchases ranging between ¥400 million RMB ($55.6 million USD) and ¥1.1 billion RMB ($152.9 million USD).

The smart money clearly believes in this sector’s upside.

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The Numbers Paint a Stunning Picture: 48% Annual Growth for Five Years

If you want to understand the investment opportunity, look at the projections.

According to China Galaxy Securities (Zhongguo Yinhe Zhengquan 中国银河证券), the combined market for manufacturing and launching two major satellite constellations will reach:

• ¥26.8 billion RMB ($3.72 billion USD) in 2026
• ¥127.9 billion RMB ($17.78 billion USD) in 2030

That’s a Compound Annual Growth Rate (CAGR) of 48.1% over five years.

In other words: a nearly fivefold increase.

But wait—there’s more.

Based on global industry structures, downstream operations such as ground equipment and satellite services are expected to contribute ¥1.3 trillion RMB ($180.7 billion USD) in related output value by 2030.

Let that sink in.

The entire commercial space ecosystem—not just rockets and manufacturing—could be worth over $180 billion USD in downstream services alone.

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Space Computing: The Next Growth Driver

• 2025-2027: Launch of first-phase computing power constellation
• 2030: Realization of “Earth Data, Space Computing” ecosystem
• 15th Five-Year Plan Period: Period of massive investment value realization

The growth story doesn’t end with reusable rockets.

Zhongtai Securities (Zhongtai Zhengquan 中泰证券) highlighted that Beijing has already released plans for a space data center.

Here’s the timeline:

• 2025-2027: First phase of a computing power constellation launches
• 2030: Goal of achieving “Earth Data, Space Computing”

The acceleration of “Space Computing” infrastructure will create new growth points for both satellite manufacturing and rocket launches.

Experts believe China’s commercial space industry has crossed the inflection point from exploration to a growth phase, with massive investment value expected during the “15th Five-Year Plan” period.

Translation: We’re moving from “let’s see if this works” to “how do we scale this massively.”

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The Bigger Picture: Why This Matters for Investors

Reusable rockets solve a fundamental problem in space economics: launch cost.

For decades, every rocket launch meant destroying the most expensive component—the booster.

Now China has proven it can recover and reuse them.

This breakthrough triggers a domino effect:

• Costs per launch drop significantly
• More companies can afford to launch satellites
• Demand for satellite manufacturing increases
• Supporting industries (electronics, materials, infrastructure) see expansion
• New services emerge around “Space Computing”
• The entire value chain becomes more attractive to capital

We’re watching an industry move from niche aerospace engineering to mainstream infrastructure.

And that’s why leveraged funds are dumping billions into commercial aerospace stocks right now.

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References

• Rocket Reusability Breakthrough! “Two Constellations” Manufacturing + Launch to see 5x Space in 5 Years – East Money Research Center
• Technology Innovation and Mission Updates – China Aerospace Science and Technology Corporation (CASC)
• Aerospace Industry Analysis and Reusability Trends – Huatai Securities
• China Satellite Market Forecast 2026-2030 – China Galaxy Securities