On September 10, the defense sector continued its active run, pushing for an 11th gain in 13 sessions, with the Huabao Military ETF (512810) trading higher against a weaker market. Among its constituent stocks, Geovis Technology led the advance with a gain of over 6%, while heavyweight leader China Shipbuilding rose more than 3% to hit a fresh three-month high, potentially securing a sixth consecutive day of gains. CSSC Offshore & Marine Engineering also climbed over 3%, breaking above its annual moving average.

On the data front, figures from the China Shipbuilding Industry Association show that China's shipbuilding completions reached 36.5 million deadweight tons in the first half of 2026, up 51.2% year-on-year and accounting for 62.2% of the global total. New orders surged to 121.06 million deadweight tons, a 173.1% increase year-on-year, representing 82.3% of the global share. Order books stood at 363.25 million deadweight tons, up 54.9% year-on-year, or 71.2% of the global market.

Looking at the broader opportunities in the defense sector, Guosen Securities points to a potential "three-line resonance" driven by the 15th Five-Year Plan, military trade exports, and the large aircraft industry, highlighting the investment prospects. First, the 15th Five-Year Plan is poised for rollout. With the first year of the plan nearing its close, industrial policy details are expected to be finalized soon, bringing greater clarity to the sector's fundamentals and paving the way for a gradual flow of industry orders. Second, military trade exports are on an upward trajectory. Frequent global geopolitical conflicts have created a robust demand for defense equipment. China's military products, validated by real-world use and offering clear cost-performance advantages, are transitioning from single-equipment sales to full-system exports. Drones, air defense systems, and precision-guided munitions are emerging as key export drivers, with markets in the Middle East, Southeast Asia, and Africa continuing to expand. Third, the CJ1000 (Changjiang Engine) is in the final stages of airworthiness certification. The CJ-1000A has completed the relevant airworthiness testing and is now in the final phase of obtaining certification. This is expected to support a steady increase in annual C919 deliveries, benefiting the entire upstream and downstream supply chain—including airframe structures, avionics systems, and engines—with substantial room for domestic substitution.

For investors focused on defense, the "August 1st" themed Huabao Military ETF (512810) (formerly the National Defense Military ETF) passively tracks the CSI Military Industry Index, offering comprehensive coverage of hot themes such as commercial aerospace, low-altitude economy, large aircraft, MLCC, military AI, and gas turbines. It is also eligible for margin trading and Stock Connect, making it an efficient tool for one-stop investment in core defense assets.

Data sources: Shenzhen Stock Exchange, Shanghai Stock Exchange, CSI Index Company, and other public information. Institutional views: Guosen Securities, September 9, 2026, "Defense Sector Faces Three-Line Resonance, Presenting Investment Opportunities." Fund fees: When subscribing or redeeming fund shares, agents may charge a commission of up to 0.5%, which includes fees collected by the stock exchange and registration institutions. Special notice: The fund manager assesses the risk level of the Military ETF as R3—medium risk—suitable for investors with a balanced (C3) profile or above.

Risk disclosure: The Huabao Military ETF passively tracks the CSI Military Industry Index, with a base date of December 31, 2004, and a launch date of December 26, 2013. Historical annual returns/annualized volatility from 2021 to 2025 were 14.28%/33.05%, -25.74%/23.44%, -11.02%/18.34%, 8.20%/34.39%, and 31.55%/21.43%, respectively. The index's constituent stocks are subject to periodic adjustments per its methodology. Past performance does not indicate future results. The weighting of mentioned stocks in the CSI Military Industry Index is shown in the accompanying chart, with data as of July 31, 2026. Descriptions of individual stocks do not constitute investment advice, nor do they represent the holdings or trading activities of any fund managed by the fund manager. Constituent stocks of the benchmark index are adjusted periodically according to index rules. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any forms of expression) is for reference only. Investors are solely responsible for their own investment decisions. Furthermore, any views, analyses, or forecasts in this article do not constitute investment advice to readers, and the author assumes no liability for any direct or indirect losses arising from the use of this content. Fund investing carries risk. Past performance does not guarantee future results, and performance of other funds managed by the fund manager does not guarantee the performance of this fund. Investors should invest with caution. A MACD golden cross signal has formed, and these stocks are showing strong momentum!