Core Viewpoint - The military industry is experiencing a short-term adjustment, with the aerospace and defense sector index declining by 1.13% as of 11:06 AM on July 15, highlighting mixed performance among component stocks [1] Group 1: Market Performance - The aerospace and defense ETF (159227), which tracks the CN5082 index, fell by 1.27% with a trading volume of 52.01 million yuan, marking 13 consecutive trading days of net inflow totaling 312 million yuan, bringing its latest scale to 570 million yuan, the largest among its peers [1] - The CN5082 index shows a high concentration in the military industry, with 98.2% of its components belonging to the military sector, and aerospace equipment accounting for 66.5% of its weight [2] Group 2: Technological Advancements - The recent public demonstration of the "Jiutian" drone mothership by the China Eastern Military team showcases its capabilities, including a wingspan of 25 meters and a payload of 6 tons, capable of carrying 300 "Xuanbird" suicide drones for saturation attacks [1] - The "Jiutian" system achieved a 92% penetration rate against the US-made "Patriot-3" defense network during simulated confrontations, indicating significant advancements in large drone platforms and potential benefits for the military supply chain [1] Group 3: Future Outlook - According to Dongfang Securities, the military trade sector is expected to become a second growth driver as the industry continues to recover in the final year of the 14th Five-Year Plan, with upstream components and key materials poised to benefit from increased demand [2]

Core Viewpoint - The military industry is experiencing a phase of adjustment, with significant capital inflow into the aerospace sector, particularly the Aerospace ETF (159227), which has seen continuous net inflow for 13 trading days, totaling over 300 million yuan [1][2]. Group 1: Market Performance - On July 14, the three major indices showed mixed results, with the Shanghai Composite Index rising by 0.27%, while the Shenzhen Component Index and the ChiNext Index fell by 0.11% and 0.45%, respectively [1]. - The Aerospace ETF (159227) closed at 1.100 yuan with a trading volume of 72.94 million yuan, and its latest scale reached 570 million yuan, ranking first among popular ETFs [1]. Group 2: Key Developments - The China Eastern Military Industry team publicly showcased the maiden flight of the "Jiutian" drone carrier, which has a wingspan of 25 meters and a payload of 6 tons, capable of carrying 300 "Xuanbird" suicide drones for saturation attacks [2]. - The Chinese Ministry of Defense announced the first Youth Leaders Conference of the China-Africa Peace and Security Forum, set to take place in Nanjing from July 15 to 19, with participation from nearly 90 mid-level military officers from over 40 African countries [2]. - The U.S. Secretary of Defense signed a memorandum on July 10 to comprehensively reform the military drone strategy, aiming for the U.S. to dominate the small drone sector by 2027 [2]. Group 3: Institutional Insights - Huafu Securities indicated that from 2025 to 2027, driven by multiple catalysts such as the "14th Five-Year Plan" and the "Centenary Goals of the Army," both domestic and foreign demand in the military industry are expected to grow significantly, making military development a key focus for the future [3]. Group 4: Related Products - The Aerospace ETF (159227) tracks the National Aerospace Index, which has a strong military attribute, with the military industry accounting for 98.2% of its composition, and aerospace equipment holding a weight of 66.5%, significantly higher than other military indices [4].