Written into the government work report for three consecutive years, the low-altitude economy is poised for takeoff. 11 industry chain stocks have been significantly increased by investors.

This article focuses on the low-altitude economy industry. According to the Civil Aviation Administration of China, by 2035, the market size of China’s low-altitude economy is expected to surpass 3.5 trillion yuan, with broad growth potential.

Increased Capital Recognition of the Low-Altitude Economy

The 2026 government work report emphasizes cultivating and expanding emerging and future industries. It implements industrial innovation projects, encourages state-owned enterprises to lead the opening of application scenarios, and aims to develop new pillar industries such as integrated circuits, aerospace, biomedicine, and the low-altitude economy.

This is the third time “low-altitude economy” has been included in the government work report after 2024 and 2025. Its positioning has shifted from “new growth engine” and “emerging industry” to “emerging pillar industry.”

The low-altitude economy covers four major areas: low-altitude manufacturing, low-altitude operations, low-altitude infrastructure and information services, and low-altitude supporting industries. Capital recognition is showing an upward trend.

In the first year of the 14th Five-Year Plan, the low-altitude economy is accelerating its implementation. During the 2026 Spring Festival, the low-altitude economy fully “took off”: the Hefei branch of the Spring Festival Gala showcased EHang’s intelligent autonomous passenger aircraft; the Yibin branch featured Fengfei Aviation’s independently developed global first eVTOL water airport; Dongguan achieved helicopter low-altitude commuting directly to Shenzhen; Hangzhou significantly accelerated drone delivery. From low-altitude sightseeing and drone performances to low-altitude commuting, inspections, same-city delivery, and large-scale offshore oilfield applications, the low-altitude economy is rapidly entering thousands of households, with the industry landscape and development status continuously improving.

In 2025, the development of the low-altitude economy reached a milestone, with coordinated efforts in system construction. As policies continue to improve, airworthiness certification accelerates, technological equipment breakthroughs occur, and scene applications expand, industry orders are abundant, and sector recognition has significantly increased. Capital attention has also peaked. Data from IT Juzi shows that in 2025, the number of investment events in the primary market of the low-altitude economy sector reached 255, a year-on-year increase of over 70%, with a total financing amount of 18.331 billion yuan, the second-highest in the past five years.

Source: IT Juzi

Industry Moves Toward Standardized Development

Construction of the Low-Altitude Economy Expected to Accelerate

Currently, the domestic low-altitude economy industry structure has gradually improved. The three major regional economic circles—Greater Bay Area, Yangtze River Delta, and Beijing-Tianjin-Hebei—are accelerating their rise. Leveraging regional advantages and technological accumulation, they are at the forefront of commercializing the low-altitude economy. According to Qichacha data, as of now, there are over 160,000 related enterprises in China, mainly concentrated in Central China, South China, and North China. Among them, 49,200 new enterprises were registered in 2025, a year-on-year increase of over 140%, setting a record high. Since the beginning of this year, related enterprises have registered over 3,700 new companies.

With the rapid industry expansion, issues such as poor quality and non-standard operations by some enterprises have emerged. In response, supporting regulations have been introduced simultaneously, and the low-altitude economy is seeing intensive policy deployment. In October 2025, the Civil Aviation Administration of China issued the “Real-Name Registration and Activation Requirements for Civil Unmanned Aerial Vehicles” and the “Operational Identification Standards for Civil Unmanned Aircraft Systems,” which officially came into effect on May 1 this year, aiming to regulate the use and real-time supervision of unmanned aircraft.

In early February this year, the State Administration for Market Regulation, the Ministry of Transport, and ten other departments jointly released the “Guidelines for the Construction of the Low-Altitude Economy Standard System (2025 Edition),” aiming to establish a basic low-altitude economy standard system by 2027 that meets safety and healthy development needs. Additionally, the newly revised “Civil Aviation Law of the People’s Republic of China” will be officially implemented on July 1, 2026, further improving policy support for the development of the low-altitude economy and laying a solid foundation for industry regulation.

At this critical turning point from system construction to application implementation, the “Low-Altitude Economy Development Report (2025–2026)” indicates that in 2026, the low-altitude economy is expected to achieve leaps in multiple dimensions: policy frameworks will deepen from “framework construction” to “detailed rule operation”; safety governance will upgrade from “single-point control” to “system collaboration”; airspace supply and utilization will move toward “stability and efficiency”; manufacturing will make key breakthroughs in “engineering and delivery capabilities”; operational and service segments will initially present stable business models; business logic will be validated across different sectors; application scenarios will develop in a “classified and in-depth” manner; and value creation logic will become clearer.

Huachuang Securities states that the low-altitude economy industry may enter a speed-up phase. According to the Civil Aviation Administration of China, the market size of China’s low-altitude economy is projected to reach 1.5 trillion yuan in 2025 and could surpass 3.5 trillion yuan by 2035, with vast growth potential.

11 Industry Chain Stocks

Significant Increase in Financing Holdings

On the capital market side, listed companies are actively deploying in the low-altitude economy sector, entering a golden period of steady industry growth. According to Wind data, there are currently 70 stocks in the low-altitude economy industry chain with a total market value of 1.78 trillion yuan. Companies like China Satellite Communications, AVIC Aero-Engine, and China Satellite are all involved in low-altitude economy development, with China Satellite continuously expanding “satellite communication drone” services and actively participating in the construction of aerospace emergency rescue systems. China Satellite leverages Beidou-based “satellite application low-altitude economy” as an entry point, actively engaging in low-altitude economy development.

Based on performance forecasts (median) and consensus predictions from institutions, 44 A-share stocks related to low-altitude economy with available data are expected to have 2026 operating revenues (median) exceeding 453 billion yuan, with a compound annual growth rate of over 10% from 2023 to 2026. Among individual stocks, Wanfeng Aowei is steadily advancing the R&D and certification of eVTOL series aircraft to meet stricter airworthiness standards and safety levels; Shenglu Communication produces low-altitude economy-related antenna products and has achieved mass production and delivery; Kangxi Communication continues to promote volume growth of low-altitude economy products.

In terms of market performance, as of March 5, the average increase of stocks in the low-altitude economy industry chain this year is nearly 4%. Changyuan Donggu, AVIC Aero-Engine, and Yinlun Shares have all gained over 35% year-to-date, with Changyuan Donggu up over 80%. Meanwhile, Sifang Electronics, Longxi Shares, and Aerospace Power have all declined more than 15% this year.

Regarding financing, as of March 4, the financing balance in the industry chain increased by no less than 5% compared to the end of last year. Stocks that have underperformed the Wind low-altitude economy theme index (10.49%) this year include 11 stocks, with the largest increases in financing holdings seen in AVIC Optoelectronics, Xingyuan Zhuomei, and Longxin General.

AVIC Optoelectronics’ financing balance increased by over 41%. The company has established a major business development project management system and is actively expanding in commercial aerospace, deep-sea equipment, low-altitude economy, data centers, and intelligent connected vehicles, aiming to accelerate the creation of a “second growth curve.”

From a market performance perspective, Hait High-tech, Zhenhua Fengguang, and Longxin General have all declined over 6% this year, with Hait High-tech dropping nearly 14%. On March 4, their financing balances increased by over 25% compared to the end of last year. The company is vigorously developing high-end core equipment manufacturing and support, aerospace engineering technology and services, and R&D and application of low-altitude economy technologies.

(Article source: Data Treasure)