On the morning of October 29, A-shares came under pressure, with the Shanghai Composite Index falling 0.80%, the Shenzhen Component Index dropping more than 2%, and the ChiNext Index declining over 3.5%.
The military sector bucked the broader market trend: the CSI Military Index staged a V-shaped recovery, at one point rising more than 1%, while the Military ETF Huabao (512810), which tracks the index, pulled back to a near one-year low before rebounding into positive territory.
The commercial space concept strengthened against the market trend, with China Spacesat Co., Ltd. (ASX: 600118) hitting the daily limit up and recording turnover exceeding 2 billion yuan, topping the sector. Huali Chuangtong and Aerospace HuanYu rose more than 7%, while AVIC High-Tech, China Satcom, and AVIC Jonhon Optronic gained over 6%. On the aviation and materials side, the sector faced pressure, with Kuang-Chi Technologies hitting the daily limit down, while Huafeng Technology and Feilihua fell sharply in tandem.
The driving force may stem from industry events. On October 26, Shanghai released an action plan for innovative development of the satellite internet industry, proposing more than 3,000 satellites in orbit by 2030 and a core industry scale exceeding 80 billion yuan. At the concurrent industry ecosystem conference, the "Star Hub Plan" disclosed a roadmap for space-based computing deployment. Overseas, the FCC approved SpaceX to deploy 15,000 non-geostationary orbit satellites, and SpaceX achieved its first quarterly profit, validating the closed loop of "low-cost launch—constellation networking—cash flow." Domestically, the Long March 8A has completed 28 low-orbit group launches, with constellation construction continuing to accelerate.
Notably, recent capital has been accelerating its entry into low-position military assets via ETFs. Taking the CSI Military Index as an example, since September, capital has seen high-frequency net inflows, with cumulative position increases exceeding 2.5 billion yuan over the period as of yesterday. Chart: Changes in ETF net inflows for the CSI Military Index over the past 60 weeks. Orient Securities believes that pessimistic expectations for domestic military demand have been fully reflected in stock prices. Looking ahead, the rollout of the "15th Five-Year Plan" at year-end and the Zhuhai Airshow from December 7-13 (with more than 3,000 pieces of equipment on display) constitute Q4 catalysts.
Invest in Military, Choose "August First." The Military ETF Huabao (512810) (formerly the Defense Military ETF), with "August First" in its code, passively tracks the CSI Military Index, comprehensively covering popular themes such as military trade, commercial space, large aircraft, and low-altitude economy. It is also a margin trading and securities lending plus Stock Connect eligible target, serving as an efficient tool for one-click investment in core military assets.
Data source: Public information from the Shanghai and Shenzhen Stock Exchanges, China Securities Index Company, etc. Fund fee rates: When investors subscribe or redeem fund shares, the subscription and redemption agent may charge a commission of no more than 0.5%, which includes relevant fees charged by the stock exchange and registration institution. Special reminder: The risk rating of Military ETF Huabao as assessed by the fund manager is R3-medium risk, suitable for balanced (C3) and above investors. Risk disclosure: Military ETF Huabao passively tracks the CSI Military 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 respectively: 14.28%/33.05%, -25.74%/23.44%, -11.02%/18.34%, 8.20%/34.39%, 31.55%/21.43%. The constituent stocks of the index are adjusted in due course according to the index compilation rules. Past performance does not predict future results. The weighting of individual stocks mentioned in this article in the CSI Military Index is shown in the accompanying chart, with data as of July 31, 2026. Descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings or trading activities of any fund under the manager. The constituent stocks of the underlying index are adjusted in due course according to the index compilation 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, and investors must be responsible for their own investment decisions. In addition, any views, analyses, and forecasts in this article do not constitute investment advice of any form to readers, nor shall they bear any responsibility for direct or indirect losses caused by the use of the content of this article. Fund investment involves risks. 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 signals have formed, and these stocks are performing well!
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