"This is not a marathon, it's a line advancement"——An exclusive interview with Jiaozi Capital, decoding local state-owned capital's "aerospace warfare perspective"

Everyday Economic News Reporter | Zhang Yi Everyday Economic News Editor | Dong Xing Sheng

At this year’s National Two Sessions, “Aerospace” was included for the first time as an emerging pillar industry in the government work report, marking a new direction for the country’s narrative over the next five years.

Meanwhile, thousands of miles away in Shuangliu, Chengdu, the interstellar glory rocket manufacturing base covering 200 acres is rising rapidly; in Ziyang, Sichuan, the first phase of the Xinghe Power’s new generation solid rocket development and production base has been put into operation and trial run; in Chongzhou, Sichuan, the blueprint for the global headquarters of spacecraft AI additive manufacturing by Guoxing Aerospace has begun to take shape.

Few have noticed that these new commercial space forces scattered across the Chengdu metropolitan area are backed by the same investor—Jiaozi Capital, a subsidiary of Chengdu Jiaozi JinKong Group.

As the core investment platform of Chengdu’s local state-owned assets, Jiaozi Capital has managed and participated in over 80 funds with a total scale exceeding 180 billion yuan, forming a “3+1” Jiaozi fund matrix including “Jiaozi Future,” “Jiaozi Garden,” “Jiaozi AIC,” and “Jiaozi M&A,” incubating and cultivating a large number of national-level specialized and innovative “Little Giants.”

Today, from the complete rocket manufacturing of Interstellar Glory and Xinghe Power, to satellite applications by Guoxing Aerospace, to propulsion systems by Jiuzhou Yunqian, and key components by Chengkong Aerospace, Jiaozi Capital has precisely invested in five commercial aerospace companies, forming a complete industry chain from core components to complete rockets. A capital force from the western region is quietly taking root on China’s aerospace map.

What are the considerations behind systematically布局 key links in the industry chain? When “patience capital” becomes a macro buzzword, how do local state-owned assets respond to the demands of the times? Recently, the Daily Economic News (hereinafter “NBD”) exclusive interviewed a relevant person in charge of Chengdu Jiaozi Capital Management (Group) Co., Ltd. (hereinafter “Jiaozi Capital”), attempting to interpret this “frontline advancement” of commercial aerospace from a capital perspective.

Image source: Provided by Chengdu Jiaozi JinKong Group

Question of the Era: Why Commercial Aerospace?

“The ultimate goal of commercial aerospace is promising”

NBD: The 2026 National Two Sessions listed aerospace as an emerging pillar industry, and the macro environment emphasizes “patience capital.” Looking back from this coordinate, how does Jiaozi Capital’s investment align with the era’s theme?

Jiaozi Capital: Commercial aerospace is one of the important supports for future national economic development and will be a major battlefield in future great power competition. From this perspective, we believe investing in commercial aerospace is macroeconomically feasible.

From the perspective of historical development and societal progress, commercial aerospace is a crucial step for humanity to reach space. Human civilization advancing higher and farther depends on practical tools like rockets and satellites. Therefore, from these angles, the ultimate goal of commercial aerospace is promising, and patience capital must have confidence and determination to see a bright future. Combining these, we have better opportunities to invest in industries and companies that meet the needs of the times.

NBD: Investing in commercial aerospace requires following market laws while also bearing national strategic responsibilities. Some worry that these two attributes may conflict, especially when market hotspots and policy directions do not align in certain years. How do you view this issue?

Jiaozi Capital: Actually, this dual attribute is not contradictory but rather coordinated and unified.

If you only look at a single year, you might find mismatches between market and policy, or see companies with business models achieving earlier financial returns than those focusing solely on technology. But if you look at a 5, 10, or even 20-year horizon, market laws are driven by consumer demand, and national strategies aim to safeguard people’s well-being. These are fundamentally unified, so following market laws is also fulfilling national strategic responsibilities.

In the core segment of complete rocket manufacturing, Jiaozi Capital funds have invested in Interstellar Glory and Xinghe Power. Image source: Interstellar Glory provided

Question of Risk: How to face uncertainty?

“We will maintain maximum patience”

NBD: In the field of commercial aerospace, some companies excel in technology, others in market capability. In your view, at this stage, which is more important for aerospace companies—technological breakthroughs or market implementation? Compared to investing in internet, consumer, and other sectors, what are the unique challenges?

Jiaozi Capital: Successful tech companies must excel in both technology and business models. The internet and consumer sectors, under different market conditions, can leverage business models to gain clear advantages and convert these into scale advantages, triggering network effects.

From market terminology, initially, internet giants like BAT, then AI “Six Little Tigers,” agile startups, and now commercial aerospace—rocket complete manufacturing, engines, satellites, payloads, constellations—these concepts of “top players” are extending from leading companies to niche segments.

For investors, the goal is always to invest in the best. The market consensus favors top-tier teams, but the top spot within these tiers is often uncertain for a long time. So decision-making becomes more challenging: previously, the hardest part was securing quotas from top companies; now, it’s also about selecting the number one within the top tier.

NBD: From industry laws, the journey from laboratory technology to commercial mass production in aerospace often involves long trial-and-error phases and huge capital consumption. If this investment series is a marathon, how far are we? Is the “pacing” ideal?

Jiaozi Capital: The marathon analogy is vivid, but it assumes a known finish line and steady pace, making the process and outcome predictable.

Investment is more like advancing along a front in total war. The front line doesn’t always move forward steadily; it may advance rapidly at times and retreat at others. Once a war begins, the final position of the front is hard to predict precisely. It’s an asymmetric war—knowing roughly where the front is, but difficult to determine when it will end.

This is similar to enterprise development. In early stages, investors find it hard to predict how far a company will grow or how fast.

To answer your question, I think this series of investments isn’t a marathon but a front-line push. If we must compare, we are currently in a critical period akin to the key battles of the Liberation War. Once past this, it’s like the “Hundred Thousand Heroes Cross the Yangtze.” It’s a tough phase, and many companies may fall here, but we believe the outcome will be positive.

Jiaozi Capital’s investment in Guoxing Aerospace has entered the listing guidance phase and plans to submit an IPO application. If successful, it will become a benchmark for commercial aerospace listings in Southwest China. Image source: Guoxing Aerospace provided

NBD: “Patience capital” is a hot term today, but for financial institutions, patience comes at a cost. How long can your funds afford to be patient?

Jiaozi Capital: For a single fund, patience might be around ten years or less. But for financial institutions, we maintain maximum patience.

We believe it depends on the perspective. From a financial return standpoint, crossing cycles with patience is difficult. But from a macro perspective, based on industry development logic, cultivating aerospace is not a one-day effort. Industry capital must be long-term, patient capital.

Question of Layout: Where to next?

“Future industries are trends, and they are our tracks”

NBD: Compared to Beijing, Shanghai—traditional aerospace hubs—what is Chengdu’s biggest “shortcoming” in continuing to advance in the commercial aerospace map? And what are Chengdu’s “strengths”? Is Jiaozi Capital’s investment layout aimed at filling gaps or enhancing advantages?

Jiaozi Capital: We all know the answer. Chengdu still lags behind top cities like Beijing and Shanghai in technological innovation foundation, industrial chain support, and high-end element gathering, but we also face major opportunities.

With the Chengdu-Chongqing twin-city economic circle elevated to a national strategy, the Chengdu municipal government has prioritized commercial aerospace, AI, quantum technology, satellite internet, and low-altitude economy as future industries, issuing special action plans, strengthening funds and element support, and continuously releasing policy dividends and industrial space. Chengdu’s industrial structure has room for adjustment and a stronger latecomer advantage. Additionally, Chengdu’s information, aerospace, and military-industrial bases are solid foundations for future “air-space-ground integration.”

Jiaozi Capital’s layout aims to contribute to Chengdu’s overall industrial development. We support what Chengdu needs. Our investment in the aerospace map is not strictly about filling gaps or extending advantages; it’s about integrating Chengdu’s existing strengths with the mature rocket and satellite companies in Beijing and Shanghai, serving the entire industrial ecosystem. Industries are interconnected, not isolated. Our investments both supplement Chengdu’s shortcomings and strengthen its advantages.

Image source: Provided by Chengdu Jiaozi JinKong Group

NBD: Interstellar Glory moved its production headquarters from Beijing to Chengdu, Xinghe Power is building a base in Ziyang. Could this “dual-city” model—R&D in Beijing, manufacturing in Sichuan—become a norm for future high-tech industries? What opportunities does this bring to Chengdu?

Jiaozi Capital: This is a very professional question involving corporate strategy, production management, HR, and capitalization.

From our perspective, we support companies prioritizing their own development. The “dual-city” model is primarily driven by corporate needs. Different industries and products have varying sensitivities to transportation costs. If transportation is a significant expense, companies may prefer to keep R&D and manufacturing close.

But macro-wise, under the context of a unified national market, nationwide layout is a major trend. For Chengdu, leveraging its strategic hinterland role, acting as a strategic backup, and attracting more enterprises to develop there aligns with national development strategies and enhances Chengdu’s economic vitality. Jiaozi Capital will continue to leverage capital to support Chengdu’s industrial growth.

NBD: Beyond commercial aerospace, Chengdu is also developing low-altitude economy, AI, biotech manufacturing, and other future industries. From Jiaozi Capital’s perspective, what is the next “full industry chain” track? What is the logic behind choosing these tracks? How do they differ from investing in aerospace?

Jiaozi Capital: The “14th Five-Year Plan” explicitly calls for forward-looking layout of future industries, highlighting six key areas as new economic growth points: quantum technology, biotech manufacturing, hydrogen and nuclear fusion energy, brain-computer interfaces, embodied intelligence, and 6G. These tracks all have the potential for “full industry chain” development. We don’t set limits; we are actively布局ing all these industries.

The logic for choosing tracks is simple: follow the trend. The future industries outlined in the “14th Five-Year Plan” are the trend, our tracks. As for how they differ from aerospace investments, each industry chain has its own characteristics requiring tailored investment strategies, but overall, the macro approach is similar.

We are always learning; industry development never stops, and our learning will never end.