On August 27, strength in the technology sector drove A-share markets higher on rising volume. Defense and military technology stocks moved in tandem, with notable surges in MLCC components and commercial aerospace themes. The CSI Defense Index climbed over 2%, marking its third consecutive daily gain. Constituent stocks including 旭光电子 and 宏达电子 advanced more than 7.7%, while 上海瀚讯, 中航光电, and 航天南湖 each rose over 6%. The defense-focused ETF, 军工ETF华宝 (512810), which passively tracks the CSI Defense Index, closed the session higher as well.
Since the start of the year, the defense sector has experienced a broadly volatile downward trend. The 512810 ETF remains near its yearly low, with the latest exchange closing price sitting more than 30% below its peak at the beginning of the year. According to a research note from 东方证券, investor attention and expectations for the defense sector are currently subdued, and the brokerage holds a bullish view on leading blue-chip names. At current levels, defense blue chips may be in a left-side accumulation phase, with a gradual upward trend expected and the potential for a right-side opportunity to emerge in the fourth quarter.
Looking ahead, expectations are building around the "15th Five-Year Plan," which is anticipated to be finalized before year-end. Additional catalysts include the Zhuhai Airshow scheduled for December 7-13, where a comprehensive display of military equipment is likely to strengthen expectations for accelerated domestic equipment development and expanded overseas market share. In the near term, as the mid-year reporting season unfolds, individual stock earnings could influence price movements, potentially leading to higher volatility in defense sector trading.
To date, 53 of the 80 constituent stocks in the index tracked by 军工ETF华宝 (512810) have released their interim reports, revealing divergent performance. On the revenue front, six companies reported revenues exceeding 10 billion yuan, with five of them belonging to the 中航系 group of companies. 航发动力 leads the pack with revenue surpassing 20.7 billion yuan. Nineteen companies achieved double-digit year-on-year revenue growth, with 中无人机 and 高德红外 topping the list at 272.48% and 117.94%, respectively.
In terms of profitability, 43 companies posted profits in the first half, accounting for over 80% of the total. 高德红外, 睿创微纳, and 中航光电 ranked in the top three with net profits of 1.35 billion yuan, 1.26 billion yuan, and 1.119 billion yuan, respectively. Nine companies saw their profits more than double year-on-year. 北斗星通 posted net profit growth of nearly 28 times, 高德红外 surged over 6 times, while 航锦科技 and 睿创微纳 each grew by more than 2.5 times.
From a strategic perspective, 中航证券 believes that negative expectations for the defense sector have been fully or even excessively priced in. Downside risk appears limited, while upward momentum is building. The current risk-reward profile has converged to a highly attractive range, suggesting that a strategic allocation window may be emerging.
For investors seeking defense exposure, 军工ETF华宝 (512810), also known as the former National Defense ETF, passively tracks the CSI Defense Index. It provides comprehensive coverage of hot themes including commercial aerospace, low-altitude economy, large aircraft, MLCC, defense AI, and gas turbines. The ETF is also eligible for margin trading and Stock Connect, making it an efficient tool for one-click investment in core defense assets. Data is sourced from the Shanghai and Shenzhen stock exchanges and public information. Institutional views are derived from research reports by 东方证券 dated August 24, 2026, and 中航证券 dated July 26, 2026.
Regarding fees, investors may be charged a commission of up to 0.5% by authorized agencies when subscribing or redeeming fund shares, which includes fees levied by stock exchanges and registration institutions. The risk rating for 军工ETF华宝 as assessed by the fund manager is R3-Medium Risk, suitable for balanced (C3) and above investors. The ETF passively tracks the CSI Defense Index, which has a base date of December 31, 2004, and was launched on December 26, 2013. Historical annual returns and annualized volatility for 2021-2025 were: 14.28%/33.05%, -25.74%/23.44%, -11.02%/18.34%, 8.20%/34.39%, and 31.55%/21.43%, respectively. Index constituent composition is adjusted periodically according to index rules. Past performance does not guarantee future results.
As of July 31, the weightings of mentioned stocks within the CSI Defense Index are as follows: 睿创微纳 3.92%, 航发动力 3.41%, 中航光电 3.18%, 高德红外 1.59%, 上海瀚讯 1.34%, 中无人机 1.01%, 北斗星通 0.91%, 旭光电子 0.81%, 宏达电子 0.58%, 航锦科技 0.49%, and 航天南湖 0.19%. Individual stock descriptions do not constitute investment advice in any form, nor do they represent the holdings or trading activities of any fund under the manager. Index constituents 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 form of expression) is for reference only. Investors are solely responsible for their own investment decisions. Additionally, any views, analyses, or forecasts in this article do not constitute investment advice to readers, nor do they bear responsibility for any direct or indirect losses arising from the use of this content. Fund investment carries risks; past performance of funds does not represent future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of fund performance. Investment in funds requires caution.