On June 30th, the defense sector staged a strong rebound, with Sichuan Jiuzhou shares hitting the daily limit-up. The commercial aerospace concept collectively gained strength, with Aerospace Hi-Tech Holding Group Co., Ltd. surging over 8%, and Nanjing Tianyin Electromechanical Co., Ltd. and Bright Laser Technologies Co., Ltd. rising over 7%. The core asset of the defense industry, the Huabao Military Industry ETF (512810), continued its upward trajectory, now up over 2.5%.

Key July Launches on the Horizon

July is set to witness the concentrated inaugural flights of the LandSpace Zhuque-3 Yao-2 and the Long March 10B medium-lift rockets. Market focus is expected to shift towards the intensive validation of medium rocket reusability and recovery technologies, aiming to break through the capacity bottlenecks and high costs currently constraining commercial spaceflight. Last year, the average price for a single domestic satellite was approximately 30 million yuan, with the total procurement scale only around 3 billion yuan, severely limiting the deployment plans for satellite constellations like StarNet and YuanXin, which aim for over 20,000 satellites. If recovery technology breakthroughs are achieved, launch costs are anticipated to approach SpaceX's benchmark of 18,000 yuan per kilogram.

Industry Transition and Growth Drivers

Analysis indicates that the industrial chain is currently entering a substantive capacity expansion phase. The Wenchang launch site is projected to handle 40 to 50 launches this year. The YuanXin constellation aims to launch 324 satellites by 2026, with over 200 already deployed. LandSpace plans an IPO to raise 7.5 billion yuan for production expansion. This wave of concentrated first launches is poised to catalyze a shift in the sector from thematic speculation to fundamental realization. Coupled with the formulation of 6G technology standards by 2027, demand for high-value components like communication payloads is expected to surge significantly, driving both volume and prices upward in the upstream satellite manufacturing sector.

Investment Vehicle for Defense Exposure

The Huabao Military Industry ETF (512810), whose ticker code contains the characters for "August 1st" (a reference to the founding date of the People's Liberation Army), passively tracks the CSI National Defense Index. It provides comprehensive exposure to popular themes including commercial aerospace, low-altitude economy, large aircraft, MLCC, military AI, and gas turbines. It is also eligible for margin trading and is a Stock Connect 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. Institutional views are referenced from a CITIC Securities investment strategy report on the defense industry.

Important Investment Considerations

Note: When subscribing for or redeeming fund shares, subscription/redemption agents may charge a commission of up to 0.5%, which includes relevant fees levied by stock exchanges and registration institutions.

Risk Disclosure

The Huabao Military Industry ETF (512810) passively tracks the CSI National Defense Index (Base Date: December 31, 2004; Release Date: December 26, 2013). Constituent stocks mentioned are for illustrative purposes only; descriptions of individual stocks do not constitute investment advice of any form, nor do they represent the holdings or trading intentions of any fund managed by the fund manager. The index composition is adjusted according to its rules. The fund manager assesses the risk level of this ETF as R3 (Medium Risk), suitable for investors with a Balanced (C3) risk profile or higher. All information presented (including but not limited to stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are solely responsible for their independent investment decisions. Furthermore, any views, analysis, or predictions herein do not constitute investment advice to readers, and no liability is accepted 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. Invest with caution.