The defense sector kicked off the first trading day after the holiday (October 8) with a strong opening. The CSI Defense Index rose more than 2% at one point during the session, and the Defense ETF Huabao (512810), which tracks the index, moved higher in tandem and reclaimed its 5-day moving average.
Among constituent stocks, Huali Chuangtong surged over 14%, China Power and Aerospace Development gained more than 5%, and core heavyweight China Shipbuilding rose over 3%.
Recently, news catalysts for the defense sector have been密集. At the Ministry of National Defense's regular press conference on September 24, the spokesperson made positive remarks on China-U.S. military relations, signaling an improvement in ties between the two militaries. Meanwhile, the newly revised National Defense Mobilization Law clarified the positioning of "transforming economic and social strength into national defense strength," providing institutional safeguards for the industry's medium- to long-term development.
Overseas military trade orders continued to land, forming a positive mapping effect. On September 25, the United States awarded Northrop Grumman contracts worth more than $300 million for F-35, F-16 and weapons systems. Global military trade sentiment remains elevated, reinforcing market recognition of the logic behind China's military export expansion.
The commercial space sector continues to make breakthroughs. Deep Blue Aerospace's nearly 2 billion yuan financing was completed, accelerating capital positioning in the reusable rocket track; SpaceX's Starship is scheduled for its 14th test flight in the near term, which will carry Starlink V3 satellites into orbit for the first time. The trend of domestic commercial space moving from technical verification to large-scale development is becoming increasingly clear.
In the secondary market, after a sustained pullback in mid-to-late September, the defense sector was already in oversold territory before the holiday, creating short-term rebound demand. Looking ahead, expectations for the "15th Five-Year Plan," catalysts from the Zhuhai Airshow, and the continued landing of overseas military trade orders are expected to provide sentiment support for the sustainability of the rebound.
For defense investment, choose the "August 1" — the Defense ETF Huabao (512810) (formerly the National Defense ETF), whose code contains "August 1," passively tracks the CSI Defense Index, providing comprehensive coverage of popular themes such as commercial space, low-altitude economy, large aircraft, MLCC, military AI, and gas turbines. It is also a margin trading and short selling plus Stock Connect eligible target, serving as an efficient tool for one-click investment in core defense assets.
Data source: Public information from the Shanghai and Shenzhen Stock Exchanges, China Securities Index Co., and other sources. Fund fee rate: When investors subscribe or redeem fund shares, the subscription and redemption agent may charge a commission of no more than 0.5%, which includes related fees charged by stock exchanges, registrars, and other parties. Special note: The risk level of the Defense ETF Huabao as assessed by the fund manager is R3-Medium Risk, suitable for balanced-type (C3) and above investors. Risk disclosure: The Defense ETF Huabao passively tracks the CSI Defense Index. The index's base date is December 31, 2004, and it was published on December 26, 2013. Its annual historical returns/annualized volatility for 2021-2025 were: 14.28%/33.05%, -25.74%/23.44%, -11.02%/18.34%, 8.20%/34.39%, 31.55%/21.43%, respectively. The constituent stocks of the index are adjusted in a timely manner according to the index compilation rules, and past performance does not predict future results. The weightings of individual stocks mentioned in this article in the CSI Defense Index are shown in the accompanying chart, with data as of July 31, 2026. Descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings or trading trends of any fund managed by the manager. The constituent stocks of the underlying index are adjusted in a timely manner according to the index compilation rules. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only, and investors must be responsible for any investment decisions they make independently.
In addition, any views, analyses, and forecasts in this article do not constitute investment advice of any kind to readers, nor shall they bear any responsibility for direct or indirect losses caused by the use of the content of this article. Fund investment involves risks, past performance of a fund does not represent its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. Fund investment requires caution. MACD golden cross signals have formed, and these stocks are performing well!