Core Viewpoint - The Chinese government has introduced the "Regulations on the Protection of Important Military Industrial Facilities," effective from September 15, 2025, to ensure the safety of military research and production activities amid a complex international security situation [1]. Group 1: Industry Trends - The current international security landscape is characterized by escalating regional conflicts and military dynamics, highlighting the importance of unmanned equipment and countermeasures, as well as advancements in aviation technology [1]. - The China Weapon Industry Group recently held a themed event showcasing the latest military equipment, including drones and anti-drone systems, reflecting a new concept of manned/unmanned collaborative operations [1]. - Increased defense spending is anticipated as international tensions rise, indicating a long-term positive trend for the military industry [1]. Group 2: Investment Tools - The military ETF (512660) tracks the CSI Military Industry Index (399967), which selects representative military industry listed companies from the Shanghai and Shenzhen stock markets, covering key subfields such as aerospace and weaponry [1]. - The index aims to reflect the overall performance of military-related listed companies in the Chinese A-share market, providing investors with a focused investment tool in this sector [1].

Core Viewpoint - The intensification of great power competition is a long-term trend, leading to a positive outlook for the military industry [2][4]. Group 1: Market Performance - The military industry index declined by 2.39% last week, underperforming the broader market by 1.88 percentage points, ranking 22nd out of 29 sectors [3]. - The Shanghai Composite Index fell by 0.51%, and the ChiNext Index dropped by 1.66% during the same period [3]. Group 2: Domestic Developments - On June 20, China successfully launched the Zhongxing 9C satellite using the Long March 3B rocket, marking the 582nd flight of the Long March series [3]. - At the 55th Paris Air Show, China showcased advanced equipment such as the J-35A stealth fighter and the Wing Loong-10B drone, highlighting their capabilities for both air and naval operations [3]. - The Zhuque-3 reusable rocket's first-stage propulsion system completed a ground test, laying the foundation for reusable rocket technology in China [3]. - The third China-ASEAN Defense Think Tank Exchange promoted regional defense technology cooperation, enhancing practical collaboration in defense technology and joint exercises [3]. Group 3: International Military Dynamics - Iran launched a significant missile attack against Israel, escalating regional security tensions, with at least 25 ballistic missiles targeting Israeli defense facilities [4]. - A joint statement from 21 Arab and Islamic nations condemned Israel's airstrikes on Iranian nuclear facilities, emphasizing the need for diplomatic dialogue to resolve the crisis [4]. - Modern warfare demands higher standards for equipment informatization and intelligence, with a focus on advanced aircraft and communication equipment's strategic value [4].