Core Viewpoint - The merger between China Shipbuilding and China Heavy Industry has received approval from the China Securities Regulatory Commission, entering the implementation phase, which is expected to boost the military industry sector [1][4]. Group 1: Merger Details - The merger involves a share swap and will lead to the suspension of trading for both companies' stocks starting August 13, with China Heavy Industry's stock being delisted [4]. - The merger is seen as a significant move in the military industry, potentially reducing domestic competition and enhancing military trade exports [4][5]. Group 2: Industry Outlook - The military industry is expected to maintain a high level of prosperity due to ongoing mergers and acquisitions, with state-owned enterprises possessing numerous advantageous assets [5]. - Recent geopolitical events and increased military spending globally are likely to drive demand for military trade, enhancing the competitiveness of China's military products [6][7]. Group 3: Market Trends - The completion of the BeiDou-3 global satellite navigation system has shown significant growth, with the industry scale projected to increase from 403.3 billion yuan in 2020 to 570 billion yuan by 2024, and expected to exceed 600 billion yuan by the end of this year [7]. - The military industry is entering a fundamental upward cycle, driven by domestic demand for modernization and the transition towards intelligent and unmanned systems [7]. Group 4: Upcoming Events - The upcoming military parade commemorating the 80th anniversary of the victory in the War of Resistance against Japan is expected to positively impact the military sector, as historical trends indicate a surge in military stock performance leading up to such events [8][10]. - The current period marks a transition between the 14th and 15th Five-Year Plans, with significant growth in military contracts and orders anticipated [10]. Group 5: Investment Tools - The military ETF (512660) is highlighted as a key investment tool, covering the entire military industry chain and currently leading in scale among similar products [10].