On the first trading day following the holiday (October 8), A-shares plunged in the afternoon session, with all three major indices closing lower. A selloff in technology stocks dragged the Shenzhen Component Index down more than 2% and the ChiNext Index down 3.15%, both hitting near six-month lows. The military sector showed resilience despite an intraday pullback, with the CSI Military Index rising as much as 2.5% in morning trading before turning negative in the afternoon and closing down 0.41%. The Military ETF Huabao (512810), which tracks the CSI Military Index, mirrored the index movement with an intraday amplitude of 3.6%.
Among constituent stocks, decliners outnumbered gainers overall, but several heavyweight stocks bucked the trend to support the index: China Shipbuilding rose 1.82%, China Power gained 3.29%, Aerospace Electronics added 1.33%, and China Satellite climbed 2.62%. In addition, Guobo Electronics and Huali Chuangtong surged 8.09% and 6.67% respectively.
The strong counter-trend performance of leading stocks in the shipbuilding and satellite internet sectors may be attributed to positive news developments. As of the end of September, the global new ship price index reached 186.59, up 0.13% month-on-month, marking six consecutive months of month-on-month gains. In September, China's newly signed shipbuilding orders totaled 12.2962 million deadweight tons, up 21.13% year-on-year. For the first nine months of the year, China's cumulative new orders reached 174 million deadweight tons, accounting for 81.71% of the global total, cementing Chinese shipyards' competitive advantage.
On October 6, the U.S. Federal Communications Commission granted conditional approval for SpaceX to deploy and operate a new direct-to-cell satellite system, authorizing a constellation of up to 15,000 satellites. Zhongtai Securities noted that the mega-constellation further reinforces the commercial aerospace industry logic of "manufacturing-launch-operation," and the commercial aerospace sector is expected to sustain high-growth momentum. At the industry level, during the Ministry of National Defense's regular press conference on September 24, a spokesperson expressed a positive stance on China-U.S. military relations, signaling improved ties. Meanwhile, the newly revised National Defense Mobilization Law clarified the positioning of "transforming economic and social strength into national defense strength," providing institutional support for the industry's medium-to-long-term development.
In the secondary market, the military sector has entered oversold territory after a sustained pullback in mid-to-late September, creating short-term rebound demand. Looking ahead, expectations surrounding the 15th Five-Year Plan, catalysts from the Zhuhai Airshow, and the continued execution of overseas military trade orders are expected to provide sentiment support for the sustainability of a rebound. Orient Securities explicitly stated it is "bullish on military sector rebound opportunities in Q4."
Choosing Military ETF Huabao (512810) for Military Exposure
With its code containing "August 1st," the Military ETF Huabao (512810) (formerly Defense Military ETF) passively tracks the CSI Military Index, providing comprehensive coverage of popular themes including commercial aerospace, low-altitude economy, large aircraft, MLCC, military AI, and gas turbines. It is also a margin trading and stock connect eligible instrument, serving as an efficient one-click tool for investing in core military assets.
Data source: Shanghai and Shenzhen stock exchanges, China Securities Index Company, and other public information. Institutional views: Zhongtai Military dated October 8, 2026, "SpaceX Direct-to-Cell Satellite Service Approved, Mega-Constellation Opens New Space for Industry Growth." Orient Securities dated September 29, 2026, "Defense Military Industry Weekly: Bullish on Sector Rebound Opportunities in Q4."
Fund fee structure: When investors subscribe to or redeem fund shares, subscription and redemption agents may charge a commission not exceeding 0.5%, which includes fees collected by stock exchanges, registration institutions, and other relevant parties.
Special notice: The risk rating assessed by the fund manager for Military ETF Huabao is R3-Medium Risk, suitable for balanced (C3) and above investors.
Risk disclosure: Military ETF Huabao passively tracks the CSI Military Index. The index base date is December 31, 2004, and it was published on December 26, 2013. Historical annual returns/annualized volatility for 2021-2025 are respectively: 14.28%/33.05%, -25.74%/23.44%, -11.02%/18.34%, 8.20%/34.39%, 31.55%/21.43%. The index constituent composition is adjusted in accordance with the index compilation rules as appropriate. Past performance does not predict future results. The weightings of individual stocks mentioned in this article within the CSI Military Index are shown in the accompanying chart, with data as of July 31, 2026. Descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings or trading activities of any fund managed by the manager. The constituent composition of the underlying index is adjusted in accordance with the index compilation rules as appropriate. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only, and investors must be responsible for their own investment decisions. Additionally, any views, analysis, and forecasts in this article do not constitute investment advice of any kind to readers, nor shall they bear any responsibility for direct or indirect losses arising from the use of this content. Fund investment involves risks. Past performance of a fund does not represent its future performance. The performance of other funds managed by the fund manager does not constitute a guarantee of fund performance. Fund investment requires caution.