Aerospace stocks gain after China’s successful launch of manned spaceship

Chinese shares related to the aerospace and defense sectors rallied on Thursday following the nation’s successful launch of a manned spaceship, though some closed relatively lower.

China Great Wall Technology, the parent company of Changsha Xiangji Haidun Technology Co, gained about 4 percent. The company said that five sets of LCD instrument displays, information commands and other control equipment on the Shenzhou-12 spacecraft were made at its subsidiary in Changsha, capital of Central China’s Hunan Province.

These instruments act as the “eyes” of the three astronauts, giving them information on the spacecraft and data sent from the ground in real time through the human-computer interface, according to the company, adding that the devices allow the crew to realize full control in the process of the round trip, rendezvous and docking.

China announced on Thursday the successful launch of the Shenzhou-12, which docked with the space station core module Tianhe on the same day, where the astronauts will be on a three-month mission, according to the Xinhua News Agency.

The spacecraft, atop a Long March-2F carrier rocket, was launched from the Jiuquan Satellite Launch Center in Northwest China’s Gobi Desert.

It is China’s seventh manned space mission and the first during the construction of China’s space station, according to the China Manned Space Agency. It is also the first in nearly five years.

Following the launch, Chengdu Spaceon Electronics, an atomic clock supplier, closed 2.03 percent higher, after surging by the daily 10-percent limit at the opening.

Xi’an ChenXi Aviation Technology, a maker of aircraft parts, finished 4.38 percent higher. It opened 7.36 percent higher.

In Hong Kong, shares related to the aerospace sector gained 0.83 percent on Thursday.

Defense shares have also been the subject of hype in the stock market, and the launch of Shenzhou-12 renewed investors’ interest in related companies after a pullback that started earlier in the year.

A report by CITIC Securities said recent corporate earnings statements showed that the defense sector is on a gradual growth path.

Analysts said that the sector will gradually shift to a fundamentals-driven mode instead of an event-driven one, as it is expected to enter a new growth stage in the first year of the 14th Five-Year Plan (2021-25).