On February 12, the Huabao Defense Sector ETF (512810) experienced an intraday rally, climbing as much as 1.43% before consolidating at elevated levels in the afternoon session, with real-time turnover exceeding 35 million yuan.
Among the constituent stocks, Yingliu shares hit the daily limit up, while Huafeng Technology and Aecc Aviation Power Co., Ltd. led the gains, rising 11.73% and 6.09% respectively. Hailanxin, Aerospace Electronics, and China Satellite were among the top decliners.
Recent developments include the successful maiden flight of China's first aerospace-developed electric vertical takeoff and landing aircraft on February 6, led by the Ninth Academy of China Aerospace Science and Technology Corporation, marking an innovation in land-air transportation modes. Additionally, sales in the domestic 3D printing equipment industry have shown significant growth due to the recovery in downstream defense and aerospace businesses, with several leading companies actively expanding production to meet demands for lightweight and precision components.
Analysis indicates that the 15th Five-Year Plan emphasizes high-quality advancement in national defense and military modernization. The development of new-domain combat capabilities will accelerate the upgrading of advanced weaponry, ushering in a new growth phase for defense equipment. The defense industry represents a critical direction for breakthroughs in new quality productive forces, with promising prospects. Against a backdrop of frequent global conflicts and unstable geopolitical conditions, the importance of national security has increased, potentially supporting sector valuations.
Guotai Haitong noted that the increasingly complex international environment requires winning modern wars through advanced fighter jets and missiles as decisive tools, cost-effective equipment like rockets for sustained engagements, and reliable communication and command systems. Intensified great power competition is a long-term trend, boding well for sustained defense sector growth. By 2027, the centennial goal of military development must be achieved, with accelerated efforts to address weaknesses expected during the 15th Five-Year Plan period. Key focus areas include aerospace equipment and emerging hotspots like satellite internet.
The Huabao Defense Sector ETF passively tracks the CSI Defense Index, whose top ten holdings comprise China State Shipbuilding, Guangqi Technology, Aerospace Electronics, Aecc Aviation Power Co., Ltd., China Satellite, Avic Shenyang Aircraft, Avic Optoelectronics, Raytron Technology, Feilihua, and Avic Xi'an Aircraft.
Data sources include the Shanghai and Shenzhen stock exchanges and public disclosures.
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A golden cross signal has formed in MACD indicators, indicating robust gains for these stocks.