Military industry sector finding bottom, capital accelerates chip accumulation! Huabao Fund Military Industry ETF (512810) dips 2% with frequent premium appearance!

In the afternoon of March 20, the military industry experienced a low-level fluctuation, with the commercial aerospace concept leading the decline. Beidou Star Communication fell over 6%, and Aerospace Development dropped more than 5%. The core assets of the military industry—Huabao Military Industry ETF (512810)—once fell more than 2%, with frequent premiums in the market, indicating active buying sentiment. Previously, on the 5th, 512810 received a net subscription of over 14 million yuan.

Analysis indicates that the recent adjustment in the military industry sector may be influenced by market sentiment, but the sector’s fundamentals are improving, and the outlook remains high.

Top-level design-wise, this year’s government work report proposed developing emerging pillar industries such as integrated circuits, aerospace, biomedicine, and low-altitude economy. CITIC Construction Investment believes that cutting-edge military technology is spilling over into civilian sectors, fostering new trillion-yuan industries like commercial aerospace, low-altitude economy, future energy, deep-sea technology, and large aircraft, which could create a virtuous cycle of “military technology civilian use, feeding back into military industry.”

Guoxin Securities pointed out that ongoing geopolitical and military conflicts further highlight the strategic importance of the military industry. Global military spending continues to expand, and China’s defense expenditure remains steady. The 14th Five-Year Plan has outlined high-quality modernization of China’s defense and armed forces, accelerating the renewal of advanced weapons and equipment, ushering in a new development period for military industry equipment. In recent years, China’s global competitiveness in shipbuilding, aerospace, and satellite navigation has continued to improve. The military industry is a key area for breakthroughs in new productive forces, with broad industry prospects.

【Invest in Military Industry, Choose “August 1”】 The Huabao Military Industry ETF (512810), formerly the National Defense Military Industry ETF, features “cutting-edge military technology across sea, land, air, and space,” covering hot topics such as “commercial aerospace, large aircraft, low-altitude economy, military AI,” and is also a target for margin trading and interconnection, making it an efficient tool for one-click investment in core military assets.

Data sources include Shanghai and Shenzhen stock exchanges, public information. Institutional views from CITIC Construction Investment Securities 20260310 “National Defense Military Industry: 7% Growth in Defense Budget, Focus on Civil-Military Investment Opportunities” and Guoxin Securities 20260319 “Weekly Review of the Defense Military Industry.”

Note: When investors subscribe or redeem fund shares, the subscription and redemption agents may charge a commission of up to 0.5%, including related fees from stock exchanges, registration agencies, etc.

_Risk reminder: Huabao Military Industry ETF passively tracks the CSI Military Industry Index, which was base date December 31, 2004, and released on December 26, 2013. The index components shown are for display only; individual stock descriptions are not investment advice and do not reflect holdings or trading trends of any fund managed by the manager. The index component adjustments are made according to the index’s rules. The risk level of Huabao Military Industry ETF, as assessed by the fund manager, is R3—medium risk, suitable for balanced (C3) and above investors. All information in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of statements) is for reference only. Investors are responsible for their own investment decisions. The views, analysis, and forecasts in this article do not constitute investment advice and do not hold the fund manager or any associated funds liable for any direct or indirect losses caused by using this content.**

Investment in funds involves risks. Past performance does not guarantee future results. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Please invest cautiously.

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