Market Overview - The defense and military industry is experiencing a strong performance, driven by positive expectations surrounding the upcoming military parade, with the China Securities Military Index rising over 3% on August 6, 2025 [5][6] - Major funds have significantly net bought into the defense and military sector, leading all industries in net inflow [5][6] Sector Performance - The mechanical equipment sector led the market with a daily increase of 3.07%, followed by coal and defense industries with increases of 1.98% and 1.89% respectively [2] - Conversely, the pharmaceutical and biological sector saw the largest outflow of funds, with a net outflow of 6.52 billion [2] Fund Flows - The top three sectors for fund inflows were mechanical equipment (2.733 billion), automotive (1.365 billion), and defense (1.147 billion) [2] - The sectors with the highest net outflows included pharmaceuticals (6.520 billion), communications (2.321 billion), and electronics (819 million) [2] ETF Performance - The National Defense Industry ETF (512810) showed a 22.26% increase over the past six months, indicating strong investor interest [4] - The Smart Manufacturing ETF (516800) and the General Aviation ETF (159231) also demonstrated positive performance, with increases of 5.52% and 1.75% respectively [3][4] Financing Trends - The market's margin financing balance has returned to over 2 trillion yuan, a level not seen in a decade, indicating increased investor confidence [6] - The brokerage sector is expected to perform well in the future, as its performance closely correlates with market financing balances [6]