Xin Lang Cai Jing·2025-06-09 06:06Core Viewpoint - The defense sector is experiencing significant growth, driven by increased military spending and foreign trade opportunities, particularly in the context of global geopolitical shifts [1][2]. Group 1: Market Performance - As of June 9, 2025, the CSI Defense Index (399973) rose by 1.52%, with notable increases in constituent stocks such as AVIC Shenyang Aircraft (600760) up 7.86%, Guorui Technology (600562) up 7.22%, and AVIC Xi'an Aircraft (000768) up 4.29% [1]. - The Defense ETF (512670) increased by 1.67%, reaching a latest price of 0.73 yuan, with its total scale hitting 5.183 billion yuan, marking a one-year high [1]. - The Defense ETF has seen continuous net inflows over the past four days, with a peak single-day net inflow of 317 million yuan, totaling 520 million yuan [1]. Group 2: Industry Insights - Following Indonesia's consideration to purchase 10 J-19 fighter jets, Pakistan announced the acquisition of 40 J-35 fighter jets, an AWACS aircraft, and the Hongqi-19 missile defense system [1]. - Guotai Junan Securities suggests that the evolving global political landscape may open new growth avenues for the military industry, recommending companies closely tied to exports [1]. - The analysis indicates that increased defense spending is essential in the current era of great power competition, with domestic demand and foreign trade expected to drive high prosperity in the military industry, maintaining a long-term positive development trend [1]. Group 3: ETF Characteristics - The Defense ETF closely tracks the CSI Defense Index, which includes listed companies under the ten major military groups and those providing equipment to the armed forces [2]. - Among the 13 ETFs tracking the defense sector, the Defense ETF has the lowest management and custody fees at 0.40%, making it unique in its category [2]. - As of May 30, 2025, the top ten weighted stocks in the CSI Defense Index accounted for 44.58% of the index, including AVIC Shenyang Aircraft (600760) and AVIC Xi'an Aircraft (000768) [2].