Group 1 - The A-share market indices collectively rose on August 27, with strong performances in the electronics, computer, and communication sectors, while the defense and military industry experienced a pullback [1] - The upcoming military parade is expected to enhance market sentiment towards the military industry, showcasing domestically produced main battle equipment, including new fighter jets and advanced weaponry [1] - Zhonghang Securities indicated that market risk appetite remains high, with significant expectations for fundamental improvements and frequent geopolitical stimuli, supporting the upward movement of the military sector [1] Group 2 - The Guozheng Aerospace Index outperformed other military-related indices, achieving a return of 62.45% from August 26, 2024, to August 26, 2025, surpassing the Zhongzheng National Defense Index (53.81%), Zhongzheng Military Industry Index (56.03%), and Military Leaders Index (44.26%) [2] - The Aviation and Aerospace ETF (159227) is the largest in the market, tracking the Guozheng Aerospace Index, with a high concentration of military-related stocks, covering the entire industry chain from fighter jets to missiles and satellites [1]

Core Viewpoint - The A-share market experienced a collective rebound on August 20, driven by strong performance in the military industry sector, particularly the aerospace segment, following a government announcement regarding upcoming military parades showcasing advanced domestic weaponry [1] Group 1: Market Performance - The aerospace ETF (159227) rose over 1% with a trading volume of 145 million yuan, making it the top performer in its category [1] - Key stocks such as Guangqi Technology surged over 9%, with other companies like Hitec High-tech, Steel Research High-tech, and Aviation Development Technology also showing significant gains [1] Group 2: Government Announcement - A press conference held by the State Council on August 20 introduced details about the military parade, highlighting that all showcased weaponry is domestically produced and represents the latest generation of military equipment [1] - The parade will feature advanced systems including new fighter jets, unmanned intelligent systems, hypersonic technology, and strategic missiles [1] Group 3: Industry Insights - The aerospace ETF tracks the Guozheng Aerospace Index, with a high concentration of 97.86% in the military industry, focusing on the aerospace sector [1] - The index includes leading companies across the entire supply chain, covering fighter jets, transport aircraft, helicopters, and missile systems, aligning with the strategic direction of "integrated aerospace" [1] - According to Zheshang Securities, ongoing geopolitical conflicts are expected to enhance the valuation of China's defense and military enterprises, particularly in the military trade sector [1]