1. Report Industry Investment Rating - No industry investment rating is provided in the report. 2. Core Viewpoints of the Report - The aerospace industry maintains high - level prosperity, with both military and civilian sectors advancing simultaneously. The national defense and military industry remains highly prosperous, driven by domestic demand and military trade. The aviation sector is steadily growing, propelled by both military and civil aviation. The aerospace sector combines growth elasticity and development certainty [1]. - The Guozheng Aerospace and Aviation Industry Index is a strong national defense and military - industry index that emphasizes aviation and aerospace, featuring stable R & D, stable revenue, and high industry elasticity. It has shown high elasticity during market rebound periods [1]. - The Huaguo Guozheng Aerospace and Aviation Industry ETF (159267) closely tracks the underlying index, aiming to minimize tracking deviation and tracking error. The fund manager has rich experience, and the fund manager, Huaan Fund, has a large asset management scale and a long - standing history [1]. 3. Summary by Directory 3.1 Aviation and Aerospace Maintain High - level Prosperity, with Both Military and Civilian Sectors Advancing Simultaneously 3.1.1 National Defense and Military Industry Maintains High - level Prosperity, with Domestic Demand and Military Trade Promoting Growth - The defense budgets of China and the United States have been growing steadily, maintaining a high level of military industry prosperity. From 2023 - 2025, China's defense budget had a year - on - year growth rate of 7.2%. The US Department of Defense has increased its defense construction and equipment funding in recent years [7]. - Domestically, the construction of military mechanization and informatization during the 14th Five - Year Plan is ongoing, and intelligent and unmanned technologies are expected to become new drivers for military construction during the 15th Five - Year Plan. Military orders are gradually being fulfilled, and there is an expectation of a full - scale order explosion [12][15]. - Internationally, due to the changing international situation and China's growing national strength, China's military trade has entered a new historical opportunity. The Middle East has a high demand for military equipment, and China's military trade net export volume has been increasing steadily. In 2024, the net export volume reached 1.059 billion TIV, and China's military trade export accounted for about 4% of the global military market [17][21]. 3.1.2 Military and Civil Aviation Drive the Stable Growth of the Aviation Sector - **Military Aviation**: Aircraft manufacturers are expected to gain new growth momentum from the 15th Five - Year Plan, with strong domestic demand growth resilience. The demand for high - end fighter jets from the air force and navy is increasing, and there is a large replacement space. Military exports are expected to become a new performance growth point. The market space for military aviation engines in the next decade is expected to reach 1.212 trillion yuan [31][41]. - **Civil Aviation**: Large aircraft have great strategic significance and potential economic value, with a significant economic "multiplier effect". The production capacity of C919 is expected to reach 150 aircraft per year within 5 years. The low - altitude economy is a new format in the aviation industry, with the industry scale expected to exceed one trillion yuan in 2026, and the CAGR from 2021 - 2026E is expected to be 29.6%. Policy support is strong [43][49]. 3.1.3 The Aerospace Sector Combines Growth Elasticity and Development Certainty - **Guidance Equipment**: The guidance equipment industry chain has high elasticity. The importance of advanced missiles and consumable shells is increasing, and the demand for related core materials, chips, and components is accelerating. It is recommended to pay attention to the development opportunities of advanced and consumable equipment [59]. - **Commercial Aerospace**: The satellite industry chain has a pyramid structure, with a huge market potential. The rocket launch market concentration is expected to increase, and the domestic recoverable rockets may enter mass application after 2027. The operation end has a large market value and significant head - concentration effect [66][73]. 3.2 Guozheng Aerospace and Aviation Industry Index: A Strong National Defense and Military - Industry Index that Emphasizes Aviation and Aerospace, Combining Stable R & D, Stable Revenue, and High Industry Elasticity 3.2.1 Index Compilation Method - The index focuses on large - market - value stocks in the Guozheng aerospace and aviation industry. The sample space includes A - shares and red - chip depositary receipts that meet certain conditions and belong to the Guozheng third - level industry "aerospace and aviation". The selection method is to determine the number of securities with a free - floating market - value coverage rate of 85%, and select the top 50 securities by free - floating market - value ranking. It uses free - floating market - value weighting and is adjusted semi - annually [77][78]. 3.2.2 Index Weight and Market - value Distribution - As of July 1, 2025, the index has 50 constituent stocks, with relatively dispersed weights. The top ten constituent stocks account for 49.42%, and the top twenty account for 70.82%. The index significantly overweights the military - aviation equipment industry and is a relatively pure military - industry index focusing on aerospace [80][83]. - The average free - floating market value of the constituent stocks is 12.665 billion yuan, and the average total market value is 29.859 billion yuan. The total market value of AVIC Chengfei is the highest, reaching 224.395 billion yuan. The free - floating market value is concentrated in the range of 5 - 20 billion yuan, and the total market value is concentrated in the range of 20 - 50 billion yuan [85]. 3.2.3 Index Industry/Theme Characteristics - Among the constituent stocks, 48 belong to the national defense and military industry, accounting for 98.20% of the weight. It has a high concentration in the aviation equipment II and military electronics industries. Compared with comparable indices, it has the highest concentration in the military industry and the most prominent industry theme [90][94]. 3.2.4 Fundamental Characteristics - The index shows a strong R & D investment characteristic. Compared with broad - based indices, several national defense and military - industry indices have a significantly higher R & D investment ratio. The Guozheng Aerospace Index has a steadily increasing R & D investment ratio, reaching 4.53% by the end of 2024 [96]. - Since 2022, the Guozheng Aerospace Index has had the strongest profit stability. In 2024, its net profit decreased by only about 5% compared to the end of 2021, while other comparable indices had larger declines. It focuses on aerospace enterprises with heavy - asset attributes, and its net profit is expected to grow rapidly in the new up - cycle of the military industry [99]. 3.2.5 Index Investment Value Analysis - The index has strong military - industry characteristics, and its long - term trend is similar to that of comparable indices. It has shown higher elasticity than indices such as the China Securities Military Industry Index during the rebound on April 7, 2025. During market rebound periods, it has demonstrated high elasticity among military - industry indices [101][103]. 3.3 Huaguo Guozheng Aerospace and Aviation Industry ETF (159267) - The Huaguo Guozheng Aerospace and Aviation Industry ETF (159267) was established on July 21, 2025, and officially listed on August 1, 2025. The current fund manager is Liu Xuanzi. The fund closely tracks the underlying index, aiming to minimize tracking deviation and tracking error, with a management fee rate of 0.50% and a custody fee rate of 0.10% [107]. 3.4 Fund Manager and Fund Manager Information 3.4.1 Fund Manager Introduction - Huaan Fund Management Co., Ltd. was established in 1998 and is one of the first five fund management companies approved by the China Securities Regulatory Commission. As of December 31, 2024, its public fund scale exceeded 650 billion yuan, and its non - monetary public fund asset management scale exceeded 400 billion yuan. It manages 275 public funds, serving over 100 million investors and achieving over 100 billion yuan in cumulative dividends for investors. It has 42 public ETF products, with a total scale of 135.071 billion yuan [108]. 3.4.2 Fund Manager Introduction - Liu Xuanzi has a master's degree and 11 years of experience in the fund industry. She currently manages 18 passive index funds, including 14 non - linked funds and 8 ETFs, with a total non - linked product scale of 5.009 billion yuan [110].