Domestic large aircraft have achieved a critical leap forward with their "Chinese heart." At the Civil Aviation Association (CATA) Aviation Conference opening on September 17, supporting technologies for domestic large aircraft engines, digital-intelligent operation and maintenance systems, and innovations across the entire industrial chain were showcased together. The Changjiang-1000A, representing the core propulsion system for large aircraft, made its debut at the CATA conference's full-industry context, comprehensively displaying its coordinated layout with upstream and downstream sectors including airframe manufacturing and airline operations.
The domestic commercial aviation engine supply chain has entered a period of intensive catalysts. Amid continuous breakthroughs in industrialization progress, Great Wall Industry Select (Class A: 020265; Class C: 020266) has positioned itself accordingly, currently focusing on opportunities within the "two engines" industry—aviation engines and gas turbines.
In the view of fund manager Yang Weiwei, driven by tight global civil aviation delivery schedules, AI-driven electricity shortages, and the demand for self-reliance, domestic large aircraft, commercial aviation engines, and gas turbines are forming an industrial resonance rooted in shared technology. China's "two engines" sector represents a long-term hard-tech track worth watching closely.
Great Wall Industry Select focuses on the domestic commercial aviation engine "two engines"—aviation engines and gas turbines—one for flight, the other for ground-based power generation, both sharing technological origins and highly overlapping supply chains. China initiated the comprehensive "Two Engines Special Project" as early as the 13th Five-Year Plan period, underscoring its strategic importance. With the acceleration of global high-end manufacturing substitution, continued domestic policy support, and expanding downstream demand, the "two engines" sector is currently in a deepening phase of long-cycle supply-demand mismatch.
Yang Weiwei believes China can leverage its domestic market and the completeness of its "two engines" supply chain to chart a path of industrial upgrading—from components to complete engines, from military to civilian applications, and from original equipment to aftermarket services. Domestic large aircraft and commercial aviation engines are transitioning from "strategic narrative" to "industrial realization," while China's gas turbines and supporting components already possess engineering capabilities and export readiness, positioning them to fill global gaps.
Based on this assessment, during the first half of this year he began focusing on commercial aviation engine-related supply chains in the management of Great Wall Industry Select. The fund's interim report notes that AI-driven electricity shortages continue to boost gas turbine installation demand, and combined with the recovery of overseas commercial engine maintenance cycles entering a major upswing, the sector's fundamental logic remains solid. From a medium-to-long-term industry perspective, domestic commercial aviation engines stand on the brink of industrial breakthroughs, and domestic large aircraft have been designated as a key new industry for development during the 15th Five-Year Plan, with clear industry prospects.
Data shows the top ten holdings of the Great Wall Industry Select mixed fund account for a combined 76.47% of the portfolio, reflecting a relatively concentrated holdings structure. In terms of sector allocation, the fund covers multiple critical segments including complete aviation engine assembly and core components, high-temperature alloy materials, blades and structural parts, and control systems, with systematic positioning along the chain from complete engines to core components and key materials.
The top ten holdings of Great Wall Industry Select mixed fund, with weights as a percentage of net asset value, cover sectors including aviation equipment, metal new materials, biological products, refining and trading, and aviation control systems. Key positions include an aviation engine parts and gas turbine components maker at 8.85%, an annular forging and casing specialist at 8.17%, a batch manufacturing and repair provider at 8.16%, a high-quality high-temperature alloy supplier at 8.03%, a specialty functional materials company at 8.01%, a microecological preparations and high-temperature alloy developer at 7.82%, a compressor blade and structural parts manufacturer at 7.70%, a casting and wrought high-temperature alloy and specialty stainless steel producer at 7.19%, a civil aviation fuel and aviation raw materials distributor at 6.70%, and an engine control system and components manufacturer at 5.86%. (Data sources: Wind, fund periodic reports, as of June 30, 2026. Historical holdings do not represent current or future positions and do not constitute investment advice. Investment direction and specific holdings may change; the fund's investment scope and restrictions are subject to the fund contract. Funds carry risks; invest with caution.)
Three Layers of Logic Driving the "Two Engines" Sector
In Yang Weiwei's view, the long-term logic of the "two engines" sector is not driven by any single event but by the resonance of three forces—military engines establishing the foundation, gas turbines delivering medium-term growth, and commercial engines opening the long-term ceiling.
Beginning with the foundational force: the accumulation of military aviation engine technology. Since the establishment of AECC a decade ago, the "Taihang" series has become a full product family, with the J-20, Y-20, and Z-20 all powered by Chinese-made engines. The technological systems, talent pipelines, and supply chain capabilities developed in this process have built a solid foundation for aviation engines and gas turbines, which share technological origins and highly overlapping supply chains.
Looking to the medium term, gas turbines may be the segment delivering visible growth now. Yang Weiwei notes that AI data centers require stable, rapidly deployable power, and gas turbines—with controllable construction timelines and high power density—are becoming a key option for baseload power. However, institutional forecasts project that the gas turbine output gap for data centers will widen from 4.3 GW in 2025 to 15.1 GW by 2030, indicating a persistent capacity shortfall and sustained industry prosperity. (Source: company announcements, CICC Research "AI Opportunity Seeking: AIDC Drives Long-Term Power Supply-Demand Gap, Continued Bullish on Power Supply Chain," published May 26, 2026. Forecast data does not represent future actual performance; the company does not guarantee accuracy. Market risks exist; invest with caution.)
The longer-term opportunity lies in commercial engines. Projections indicate that over the next 20 years, China will receive more than 9,000 jet airliners, with the fleet expected to roughly double and account for about 20% of the global passenger fleet—enough to nurture a vast Chinese commercial aviation industry. Aviation engines represent the highest-value segment of this supply chain with significant room for domestic substitution, currently standing on the verge of industrial breakthroughs with broad development prospects. (Source: COMAC "2025-2044 Market Forecast Annual Report." Forecast data does not represent future actual performance; the company does not guarantee accuracy. Market risks exist; invest with caution.)
In summary, the three layers—military engines, gas turbines, and commercial engines—point to the same core trend: China's domestic "two engines" sector is entering a critical development phase of accelerated industrialization and expected earnings delivery. Building on this long-cycle opportunity, Great Wall Industry Select (Class A: 020265; Class C: 020266, R4 medium-high risk) strives to capture the long-term growth dividend from the domestic commercial aviation engine supply chain and deserves close attention.
Risk Disclosure: The highlighted direction represents only the fund manager's current market view and does not constitute a guaranteed future investment direction. Investment direction and specific holdings may change; the fund's investment scope and restrictions are subject to the fund contract. Invest with caution.
Fee Structure: For Class A shares, subscription fees apply based on amount (M): M<1 million at 1.5%; 1 million ≤ M < 3 million at 1%; 3 million ≤ M < 5 million at 0.5%; M ≥ 5 million at 1,000 yuan per transaction. Class C shares charge no subscription fee. For Class A shares, redemption fees apply based on holding period (T): 1 day ≤ T < 7 days at 1.5%; 7 days ≤ T < 30 days at 0.75%; 30 days ≤ T < 184 days at 0.5%; 184 days ≤ T < 365 days at 0.25%; T ≥ 365 days at 0%. For Class C shares: 1 day ≤ T < 7 days at 1.5%; 7 days ≤ T < 30 days at 0.5%; T ≥ 30 days at 0%. The fund's management fee is 1.2% per annum, custodian fee 0.2% per annum, and Class C sales service fee 0.6% per annum. Applicable sales fees are subject to the fund's legal documents as announced by the manager and the business rules of sales institutions.
Risk Warning: Funds carry risks; invest with caution. Investors should fully understand the fund's risk characteristics, heed the suitability recommendations of sales institutions, and invest prudently based on their own risk tolerance after carefully reading the Fund Contract, Prospectus, and other disclosure documents. This fund is rated R4 (medium-high risk) by the manager, suitable for clients with C4 (aggressive) risk preference or above; specific risk ratings are subject to distribution institutions. The fund manager promises to manage and use fund assets with integrity, diligence, and responsibility but does not guarantee profitability or minimum returns. China's fund industry has a relatively short operating history and cannot reflect all stages of stock and bond market development. Past performance and net value levels do not predict future results, and the performance of other funds managed by the fund manager does not constitute a guarantee of this fund's performance. After making investment decisions, investment risks arising from fund operations and net value fluctuations are borne by investors. This fund may invest in overseas securities and, in addition to general investment risks similar to domestic securities investment funds, faces special risks including exchange rate risk. Investors should strictly comply with anti-money laundering regulations when investing. This investment view reflects current perspectives only and may change in the future; it is for reference and does not constitute substantive investment advice or the final view of Great Wall Fund. The company assumes no responsibility for investment actions taken based on this content. This product is issued and managed by Great Wall Fund Management Co., Ltd., which independently bears legal responsibility; distribution institutions do not assume responsibility for the product's investment performance or redemption. This material is for promotional purposes only and does not serve as any legal document.