During the early trading session on July 21st, the defense sector experienced a V-shaped recovery after an initial dip. The popular on-market defense ETF, Huabao (512810), surged over 1%, with an intraday amplitude exceeding 3%. Notably, during its previous six-day losing streak, the fund saw continuous net subscriptions against the market trend, with an amount surpassing 100 million yuan.
Regarding constituent stocks, Raytron Technology Co.,Ltd. (688002) pre-announced that its net profit for the first half of the year is expected to increase by 242%-270% year-over-year, leading to its stock price skyrocketing over 15%! Other stocks such as BLT, China Electronics Cyber Security Co., Ltd., AVIC Aviation High-technology Co., Ltd., and Guorui Technology also rose more than 3%.
As of now, among the 80 constituent stocks of the Huabao Defense ETF (512810), 25 have released interim performance forecasts, with 18 expected to be profitable. Looking at the lower limit of the year-over-year net profit growth rate, 14 stocks achieved double-digit growth, and 8 stocks saw growth rates exceeding 100%. Aerospace CH UAV Co., Ltd. and Beijing BDStar Navigation Co., Ltd. reported astonishing growth rates of 154 times and 23 times, respectively.
Investing in the Defense Sector
The Huabao Defense ETF (512810), whose code contains "81", passively tracks the CSI Defense Index. It provides comprehensive coverage of popular themes such as commercial aerospace, low-altitude economy, large aircraft, MLCC, defense AI, 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 defense assets.
Data is sourced from the Shanghai and Shenzhen Stock Exchanges and public information.
Important Investment Notes
Investors should note that subscription and redemption agents may charge a commission of up to 0.5% when dealing in fund units, which includes relevant fees charged by stock exchanges and registration institutions.
Risk Disclosure
The Huabao Defense ETF passively tracks the CSI Defense Index. The base date for this index is December 31, 2004, and it was published on December 26, 2013. The constituent stocks mentioned 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 Defense ETF as R3-Medium Risk, suitable for Balanced (C3) and above investors. Any information appearing in this article 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 taken for any direct or indirect losses arising from the use of this content. Fund investment carries risks. The past performance of a fund is not indicative of its future results. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Fund investment requires caution.
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