Xi Jinping received representatives of the Chang’e-5 mission of the lunar exploration project on Feb. 22, but it is strange that the stock markets of two companies with a market capitalization of more than 100 billion yuan, namely, AVIC Power and AVIC Shenfei, suddenly plunged on that day.
According to the Chinese Communist Party media, Xi Jinping received representatives of Chang’e 5 mission participants in the lunar exploration project in the morning of Feb. 22 at the Great Hall in Beijing, and visited the exhibition of lunar samples and achievements of the lunar exploration project, affirming the achievements of the lunar exploration project, especially the Chang’e 5 mission.
CPC Standing Committee members Li Keqiang, Li Zhanshu, Wang Yang, Wang Huning, Zhao Leji and Han Zheng attended the event.
Reuters said Xi Jinping met with representatives of China’s lunar exploration project personnel on the 22nd and stressed the continuous promotion of the innovative development of space industry. On the same day, the A-share aerospace military industry sector as a whole followed the general market decline. Two companies with a market capitalization of more than 100 billion yuan-Airfa Power and AVIC Shenfei-led the decline with -8.39% and -7.93%, respectively.
After hitting a record high last week, China’s CSI 300 index fell 3.14% on the 22nd, the biggest one-day drop since July 24, 2020, to close at 5,597.33 points as investors worried about high stock valuations and the risk of policy tightening, the report said. The Shanghai Composite Index fell 1.45% to 3,642.44 points. The GEM index closed down 4.47 percent.
But neither the party media nor Reuters reported the reason for the rare plunge of the $100 billion aerospace stock. Public reports show that the Communist Party of China has had a number of aerospace accidents over the past year or so, and its space agencies are on the U.S. sanctions list.
On January 14, the U.S. Department of Defense announced its latest sanctions list, including nine mainland companies with a focus on semiconductors and aerospace, namely Xiaomi, COMAC, SMIC, Gao Yun Semiconductor, China Aviation Group Corporation, Daxinhua Aviation Company Limited, China Translation and Communication Technology, Wuxing Basket Technology, and Beijing Zhongguancun Development Investment Center.
On February 1, an abnormality occurred during the ignition and liftoff of CCP’s Double Curve 1, the 2nd private commercial launch vehicle. Officials declared the launch mission a failure.
On September 12, 2020, the launch of the Jilin-1 Gaofen 02C satellite failed due to an in-flight abnormality on the launch vehicle.
On July 10, the first launch of the Fast Boat 11 launch vehicle at the Jiuquan Satellite Launch Center was abnormal and the mission was lost.
On June 16, the last third-generation Beidou-3 group satellite, which the CPC had planned to launch, also had problems with the Long March 3B launch vehicle, forcing the mission to be delayed for a launch date to be determined.
On May 5, the Long March 5B launch vehicle was launched from Wenchang, Hainan, carrying a cargo return capsule test module and a new-generation manned spacecraft test vessel, which later failed to return to the landing site as planned and landed in the Atlantic Ocean near the West African coast.
On April 9, the launch of the Indonesian PALAPA-N1 satellite by a Long March 3B carrier rocket from the Xichang Satellite Launch Center failed, with the rocket’s third stage and satellite debris crashing.
On March 24, the Venezuelan satellite No. 1, developed by the Chinese Communist Party, suddenly failed in space. The satellite deviated from its orbit and stopped functioning.
On the evening of March 16, the Long March 7 medium-sized launch vehicle, on its first mission at Wenchang Space Launch Complex, failed to launch after an abnormality occurred during the flight.
Experts in Chinese launch vehicle technology had earlier disclosed in a rare case that Chinese space launches face many problems such as high rocket satellite costs, long launch cycles and unstable quality control. The Long March 5, which took 10 years to develop, was “expected to be particularly ambitious” and its launch failure had a huge negative impact.
As to the reason for the frequent occurrence of space accidents in China, Li Zhengxiu, a military expert and associate researcher at Taiwan‘s National Policy Research Foundation, told Taiwan media that the development of Chinese rockets is dependent on U.S. chips. After the outbreak of the Sino-US trade war, the US restricted the export of chips to China, thus affecting the development of the CCP’s military technology, resulting in a sharp rise in the failure rate of the CCP’s rocket launches.
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