"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"

In 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.

At the same time, 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 solid spacecraft R&D and production base has been put into operation and trial run; in Chongzhou, Sichuan, the blueprint for the global headquarters of the spacecraft AI additive manufacturing of Guoxing Aerospace has begun to take shape.

Few have noticed that these new commercial space forces scattered across 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” 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 of Guoxing Aerospace, to propulsion systems of Jiuzhou Yunqian, and key components of 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 in China’s aerospace landscape.

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” (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 this era’s theme?

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

From the perspective of historical development and societal progress, commercial aerospace is a crucial step for humanity to reach space. Human civilization advances higher and farther, relying on practical tools like rockets and satellites. Therefore, from these angles, the ultimate goal of commercial aerospace is promising, and patience capital should have confidence and determination to see a good end. Combining these, we have a better chance 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 notice that companies focusing on business models may achieve financial returns earlier 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 strategy at the economic level is about safeguarding people’s welfare. These are actually unified, so following market laws is also fulfilling national strategic responsibilities.

In the complete rocket manufacturing segment, 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 opinion, 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 combine technology and business models. The internet and consumer sectors, under different market conditions, can leverage business models to gain clear advantages and transform 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 with rockets, engines, satellites, payloads, and constellations—these concepts show that the “top tier” is extending from leading companies to specialized niche leaders.

For investors, the goal is always to invest in the best. The market consensus favors top-tier teams, but the first in a top-tier echelon is often not universally agreed upon for a long time. So decision-making becomes more challenging: previously, the hardest part was securing quotas for top companies; now, it’s not only about quotas but also about selecting the top leader within the echelon.

NBD: From an industry law perspective, moving from laboratory technology to commercial mass production in aerospace often involves long trial-and-error phases and huge capital consumption. If we compare this investment set to a marathon, how far along 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 surge ahead at times and retreat at others. Once a war begins, the final position of the front is hard to predict precisely. Asymmetric warfare means we can estimate roughly but not know exactly 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 it will develop at any future point.

To answer your question, I think this set of investments isn’t a marathon but a front-line push. If we must compare, we are currently in a critical phase akin to the decisive battles of the Liberation War. Once past this, it’s like the “hundred thousand heroes crossing the Yangtze.” It’s a tough stage, 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

Question of Patience Capital: Patience is a hot word now, but for financial institutions, patience also has costs. How long can your capital attributes allow you 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 how you view “patience.” From a financial return perspective, it’s hard to be patient across cycles. 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.

Next Stop: Where to?

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

NBD: Compared to Beijing and Shanghai, the traditional aerospace hubs, Chengdu still faces some “shortcomings” in expanding its commercial aerospace footprint. What are its biggest “shortcomings” and “strengths”? Is Jiaozi Capital’s deployment about filling gaps or enhancing advantages?

Jiaozi Capital: The answer is clear. Although Chengdu still lags behind Beijing and Shanghai in technological innovation, industrial chain support, and high-end elements, it also faces 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 strong latecomer advantage. Its existing industrial base—information, aerospace, and military industries—provides crucial support for future “integrated space-earth-sky” development.

Jiaozi Capital’s layout aims to contribute to Chengdu’s overall industrial development. We support what Chengdu needs. Our investments in the aerospace sector are not strictly about filling gaps or extending advantages; rather, they combine 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, and Xinghe Power is building a base in Ziyang. Could this “dual-city” model of “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, operations, 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 not want to separate manufacturing and R&D too far apart.

But overall, under the national unified market, a 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 aerospace investments?

Jiaozi Capital: The “14th Five-Year Plan” explicitly calls for forward-looking layout of future industries, highlighting six key areas as new growth points: quantum technology, biotech manufacturing, hydrogen and nuclear fusion energy, brain-computer interfaces, embodied intelligence, and 6G. These sectors all have the potential to develop into full industry chains. We don’t limit ourselves; we are actively investing in 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 and 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.