The defense sector is quietly recovering. On August 12, the core defense asset — Huabao Fund's Defense ETF (512810) — closed up 0.75%, marking its eighth gain in the last nine trading sessions on the daily chart. After a sharp decline in mid-July, the defense sector stabilized in late July and has been gradually recovering since the start of August.

Aerospace and aviation contributed the bulk of the gains today. Low-altitude economy concept stock Zongshen Power hit the daily limit up, Feilihua rose over 8%, commercial aerospace concept stock Tianyin Electromechanical gained 4.17%, China Satellite rose 3.23%, and Space Star Technology increased by 2.25%.

Currently, the low-altitude economy is transitioning from pilot exploration to large-scale application, presenting a trend of parallel advancement in "scenario openness" and "inclusive and prudent regulation." Huachuang Securities pointed out that the policy side is forming a development framework of "scenario openness + infrastructure improvement + safety supervision," with top-level special plans in multiple fields involving the low-altitude economy, including low-altitude transportation, low-altitude logistics, tourism consumption, and postal distribution.

Regarding commercial aerospace, China Merchants Securities research report indicated that the second half of the year may see intensive implementation of commercial aerospace reusable experiments. LandSpace (Zhuque-3) completed a static ignition test on June 29 and may launch and conduct a first-stage recovery test soon. Galaxy Space (Zhishenxing-1), iSpace (Shuangquxian-3), and Orienspace (Yinli-2) all plan to attempt reusable rocket launches this year.

Previously, SpaceX's first financial report was released, with its operating performance highlighting the acceleration of commercial aerospace commercialization, which may positively catalyze the valuation system of the global commercial aerospace industry. The report showed that SpaceX's second-quarter single-quarter revenue was $78.14 billion, a 92% increase from $40.71 billion in the same period last year, exceeding market expectations. Among this, the company's Starlink business is growing rapidly, and market expectations for full-year 2026 Starlink service revenue have been further raised from the previous $140~200 billion to $200 billion.

Regarding current opportunities in the defense sector, AVIC Securities stated that the negative expectations for the defense sector have been fully or even excessively priced in, with limited downside potential and accumulating upside elasticity. The current odds and win rate have converged to a range with high attractiveness, and the strategic allocation window may be emerging.

[Invest in defense, choose "August 1"] The code "8-1" Huabao Fund's Defense ETF (512810) (formerly the Defense ETF) passively tracks the CSI Defense Industry Index, comprehensively covering commercial aerospace, low-altitude economy, large aircraft, MLCC, defense AI, gas turbines, and other hot themes. It is also a margin trading and securities lending + Stock Connect eligible target, serving as an efficient tool for one-click investment in core defense assets.

Data source: Shanghai and Shenzhen stock exchanges, public information. Institutional views source: Huachuang Securities, August 9, 2026, "Huachuang Transportation & Logistics | Low-Altitude Economy Weekly Report (Issue 78): Multiple Fields Look to Low-Altitude Economy in '15th Five-Year Plan'." China Merchants Securities, August 10, 2026, "Aviation, Aerospace & Defense Industry Weekly Review & Outlook: SpaceX's Impressive Financials Validate Commercial Aerospace Development Potential; China's Second-Half Commercial Aerospace Reusable Experiments May Intensify." AVIC Securities, July 26, 2026, "Defense Industry Weekly Report: Public Fund Defense Holdings Hit New Lows Since 2023; Foreign Capital Defense Holdings Hit New Highs."

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Risk Disclosure: The Huabao Fund Defense ETF passively tracks the CSI Defense Industry Index. The index base date is December 31, 2004, and it was published on December 26, 2013. The annual historical returns/annualized volatility for 2021-2025 are: 14.28%/33.05%, -25.74%/23.44%, -11.02%/18.34%, 8.20%/34.39%, and 31.55%/21.43%, respectively. The constituent stocks of the index are adjusted in a timely manner according to the index compilation rules. Past performance does not predict future results. The index constituent stocks shown in the text are for display purposes only, and individual stock descriptions do not constitute any form of investment advice, nor do they represent the holdings or trading actions of any fund managed by the fund manager. The constituent stocks of the underlying index are adjusted in a timely manner according to the index compilation rules. The fund manager assesses the risk level of the Huabao Fund Defense ETF as R3-Medium Risk, suitable for investors with a balanced (C3) risk profile or above. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only. Investors must be responsible for any investment decisions made independently. Furthermore, any views, analysis, or forecasts in this article do not constitute any form of investment advice to readers, and the author is not responsible for any direct or indirect losses arising from the use of the content of this article. Fund investment involves risk. The past performance of a fund does not represent its future performance. 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 signal appears, these stocks are performing well!