The defense sector opened lower but climbed higher during the session on June 5th, experiencing a rapid surge driven by the commercial space concept. The core defense asset, the Huabao Military Industry ETF (512810), briefly rose over 1%, aiming for its third consecutive daily gain.
Constituent stocks showed mixed performance, with commercial space concepts leading the gains. Haige Communication surged 9%, while Shanghai Hanxun and Guobo Electronics rose over 7%. China Aerospace Times Electronics Co.,Ltd. (ASX: 航天电子) climbed over 6%. Concepts that soared yesterday, such as MLCC and gas turbines, generally pulled back. Hongyuan Electronics fell over 4%, Zhenhua Technology dropped over 3%, with Hongda Electronics and China Power following the downward trend.
On the news front, Space Exploration Technologies Corp has initiated its initial public offering (IPO) roadshow. The company has set the IPO issuance size at 555.6 million shares, with an expected offering price of $135 per share. The estimated net proceeds are approximately $75 billion after the basic offering and are expected to exceed $85 billion if the over-allotment option is exercised.
SpaceX plans to officially list on the Nasdaq exchange on June 12th. Market institutions predict that SpaceX's IPO size will break the record of $29 billion set by Saudi Aramco in 2019.
Huatai Securities believes that SpaceX has consistently strengthened its core position in commercial space and low-earth orbit communications in recent years. Furthermore, following the integration of xAI into SpaceX, the company has expanded its long-term growth potential in AI computing infrastructure and orbital computing power. The company's long-term growth narrative is gradually extending from commercial space to global low-earth orbit communications and AI infrastructure. Therefore, as a global leader in "commercial space + AI," SpaceX's listing plan may boost investment enthusiasm and confidence in China's aerospace industry, making the investment opportunities in the commercial space sector worth watching.
Investing in Defense with '81'
The Huabao Military Industry ETF (512810) (formerly the National Defense Industry ETF), whose code contains "81," aggregates cutting-edge military technologies across "land, sea, air, and space," comprehensively covering popular themes such as commercial space, MLCC, gas turbines, military AI, and large aircraft. 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 sources include the Shanghai and Shenzhen stock exchanges and public information. Institutional views are sourced from: Orient Securities' report dated June 1, 2026, "Weekly Report on the National Defense Industry Sector: Defense Sector Faces Short-Term Pressure, Bullish on Aero-Engines and Other Sectors, Monitoring Progress in Domestic Demand for Defense," and China Securities' report dated May 18, 2026, "Dynamic Analysis of the National Defense Industry Sector: Structural Recovery in Q1 2026 Fund Holdings for Defense, Focus on Investment Opportunities in Military-to-Civilian Conversion Sectors."
Note: When subscribing for or redeeming fund shares, 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 Defense Index, which has a base date of December 31, 2004, and was published on December 26, 2013. The index constituents mentioned herein are for illustrative purposes only. Descriptions of individual stocks do not constitute any form of investment advice and do not represent the holdings or trading动向 of any fund managed by the manager. The composition of the underlying index 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) or higher risk profile. Any information appearing in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, and expressions of any form) is for reference only. Investors are responsible for any independent investment decisions. Furthermore, any views, analyses, or predictions herein do not constitute investment advice of any kind to the reader, nor shall they bear any responsibility for direct or indirect losses arising from the use of this content. Fund investment carries risks. The past performance of a fund does not indicate 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.