On the afternoon of May 18th, the military sector fluctuated in negative territory. The core military asset, Huabao Military ETF (512810), once fell by over 1%, testing its 180-day moving average. Frequent premiums appeared in the market, indicating active buying interest. In the previous two days, a total of 6.55 million yuan had flowed into the fund against the market trend.
Constituent stock performance diverged. The heavyweight leader, China Cssc Holdings Limited, plunged 6%, leading the sector decline. Aero Engine Corporation of China and Guangqi Technology fell by over 1%. Conversely, the military informatization concept gained against the trend. Haige Communications once hit the daily limit-up and is currently up over 6%, while Hailanxin rose 4%.
As a growth-oriented sector, the military industry is relatively sensitive to changes in market risk appetite. A cooling of market sentiment may exert some pressure on the sector. From a medium to long-term perspective, the military sector presents prominent allocation value, and the current adjustment phase may offer a favorable investment opportunity.
From a fundamental perspective, industry performance shows signs of bottoming out and recovering, laying the groundwork for subsequent growth. According to CITIC Securities statistics, in 2025, the military sector achieved operating revenue of 827.632 billion yuan, a year-on-year increase of 8.46%, and realized net profit attributable to shareholders of 31.494 billion yuan, a year-on-year increase of 18.66%.
Looking at institutional holdings, as of Q1 2026, the total market value of military holdings by public funds was 147.888 billion yuan, accounting for 3.97% of their portfolios, a recovery of 0.46 percentage points from the low point in Q1 2025.
CITIC Securities pointed out that in Q1 2026, with rising expectations for the "15th Five-Year Plan," holdings showed signs of structural recovery. The market's core focus has shifted to the issuance of large-scale orders under the "15th Five-Year Plan." If the first batch of orders materializes as expected, the sector's prosperity is expected to shift from structural improvement to a comprehensive recovery, further boosting institutional willingness to increase holdings.
[For Military Investment, Choose "81"] The Huabao Military ETF (512810), whose code contains "81" (formerly the National Defense Military ETF), aggregates cutting-edge military technologies across "land, sea, air, and space," comprehensively covering hot themes such as commercial aerospace, military AI, large aircraft, and the low-altitude economy. It is also a margin trading and Stock Connect eligible security, serving as an efficient tool for one-click investment in core military assets.
Data sourced from the Shanghai and Shenzhen Stock Exchanges and public information. Note: When investors subscribe for or redeem fund shares, subscription/redemption agents may charge a commission of up to 0.5%, which includes relevant fees charged by stock exchanges and registration institutions.
Risk Warning: Huabao Military ETF passively tracks the CSI Military Index. The base date of this index is December 31, 2004, and it was published on December 26, 2013. The index constituents mentioned herein 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 trends of any funds under the management company. The composition of the underlying index constituents is adjusted according to its compilation rules. The fund manager assesses the risk level of Huabao Military ETF as R3-Medium Risk, suitable for Balanced (C3) and above investors. Any information appearing in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only. Investors are responsible for any independent investment decisions. Furthermore, any views, analysis, or predictions in this article do not constitute investment advice of any kind to the reader, 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 represent its future performance. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Caution is advised in fund investment.
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