The military industry sector staged a powerful rebound on July 3rd. The core military asset, the Huabao Military Industry ETF (512810), surged over 3%, breaking through its annual moving average. Among its 80 constituent stocks, 70 closed in positive territory, led by commercial aerospace concepts. Zhongjian Technology soared over 14%, Aerospace Huanyu jumped over 9%, while stocks including Tunan Co., Ltd., Guobo Electronics, and Aerospace Nanhu rose more than 7%.
According to statistics, the underlying index of the Huabao Military Industry ETF (512810), the CSI Military Industry Index, covers 61 stocks related to the commercial aerospace concept. The latest combined weighting of these stocks in the index exceeds 78.78%.
Key Developments
On July 2nd at 7:46 AM, China successfully launched the Haiyang-2E satellite from the Jiuquan Satellite Launch Center using a Long March 4B carrier rocket. The satellite entered its predetermined orbit successfully, marking a complete success for the launch mission.
The first launch window for the Long March 10B rocket is set for July 10th to 13th. It will take place at the Wenchang Commercial Space Launch Site to verify the globally pioneering "sea-based network recovery" technology.
Huayuan Securities pointed out that the probability of successful sea-based recovery is relatively higher compared to ground-based recovery. Once a breakthrough is achieved, the commercial aerospace sector is expected to complete its industrialization verification, thereby initiating the large-scale construction of satellite internet.
Institutional research reports indicate that, from a global perspective, the competition in commercial space is escalating from single-rocket technology upgrades to a contest over space infrastructure. Overseas, marked by SpaceX's public listing on June 12th, a capital loop encompassing "low-cost launch—Starlink constellation deployment—terminal operations—government security applications—space AI" has been established. Domestically, policy efforts are streamlining commercial launch approvals and increasing launch frequency, integrating commercial space capabilities into the national defense system. China is currently in a catch-up phase characterized by "systematic policy formulation—batch production of satellites and rockets—reusability verification—addressing launch capacity shortfalls."
Market Outlook
Looking ahead, the technology and growth investment theme is expected to remain solid. With the anticipation surrounding two types of reusable rockets aiming to challenge China's reusable rocket "DeepSeek moment," the commercial aerospace sector is poised for a new upward cycle. This momentum is anticipated to strongly drive a counteroffensive in the broader military industry sector.
Investing in Military Industry
The Huabao Military Industry ETF (512810), whose code contains "八一" (Bayi, referencing August 1st Army Day), passively tracks the CSI Military Industry Index. It provides comprehensive exposure to popular themes including commercial aerospace, low-altitude economy, large aircraft, military AI, MLCC, and gas turbines. It is also a margin trading and Stock Connect eligible security, serving as an efficient tool for one-click investment in core military industry assets.
Note: "Commercial Aerospace Content" refers to the combined weight of commercial aerospace concept stocks covered by the CSI Military Industry Index. Data is sourced from FinD as of July 2, 2026. The content is benchmarked against the Commercial Aerospace Index (886078).
Data sources include the Shanghai and Shenzhen stock exchanges and publicly available information. Institutional viewpoints are sourced from Huayuan Securities' report dated June 27, 2026, "Huayuan Securities Commercial Aerospace Weekly: Reusable Rocket Test Flights Imminent, Business Model Closure," and East Money's military industry report dated June 30, 2026, "Long March 10B and Zhuque-3 Dual Rockets Await Launch."
Note: When subscribing for or redeeming fund units, subscription/redemption agents may charge a commission of up to 0.5%, which includes related fees charged by stock exchanges and registration institutions.
Risk Disclosure: The Huabao Military Industry ETF passively tracks the CSI Military Industry Index. The base date for this index is December 31, 2004, and it was published on December 26, 2013. The constituent stocks mentioned in this article are for illustrative purposes only. Descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings or trading动向 of any fund managed by the fund manager. The composition of the underlying index's constituents is adjusted according to its compilation rules. The fund manager assesses the risk rating of the Huabao Military Industry ETF as R3-Medium Risk, suitable for investors with a Balanced (C3) risk profile or higher. Any information appearing in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts in this article do not constitute investment advice of any kind to readers, and no responsibility is assumed for any direct or indirect losses arising from the use of this content. Fund investment carries risks. The past performance of a fund does not guarantee its future results. The performance of other funds managed by the fund manager does not constitute a guarantee of this fund's performance. Invest in funds with caution.
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