Defense stocks led gains in Hong Kong. As of press time, COMEC (00317) rose 5.86% to HK$14.81, while AVICHINA (02357) gained 1.78% to HK$4. The recent controversial remarks by Japanese Prime Minister Takaichi Sanae have sparked widespread backlash. Zhongtai Securities noted that escalating geopolitical uncertainty could heighten market focus on the defense sector.

Oriental Securities highlighted that, looking ahead to next year, post the implementation of the 15th Five-Year Plan, attention should be paid to emerging areas such as unmanned and counter-unmanned systems, deep-sea technology, and combat informatization as part of new productive forces. Over the medium to long term, breakthroughs in domestic propulsion systems could unlock commercial aerospace supply, while accelerated exports of high-end Chinese equipment may expand the defense trade market. Civilian and defense trade sectors are expected to become the industry's secondary growth drivers. The current market position and timing remain favorable for the defense sector.