Core Viewpoint - The new U.S. Air Force Chief of Staff, General Kenneth F. Wilsbach, warns that China's nuclear arsenal is expected to grow significantly, reaching 1,500 warheads by 2030, which would match the levels of the U.S. and Russia [1][6]. Summary by Relevant Sections Nuclear Arsenal Growth - China's nuclear warheads have increased from approximately 300 in 2020 to 600 today, with projections indicating a rise to 1,500 by 2030 [6][7]. - In comparison, the U.S. and Russia each possess around 1,700 deployed warheads, with 1,500 on intercontinental nuclear delivery systems [6]. Strategic Implications - The expansion and modernization of China's nuclear capabilities will enhance its ability to target the U.S. mainland, which is a primary reason for the investments made during the Trump administration [6][7]. - Wilsbach highlighted that China's diverse nuclear forces, ranging from low-yield precision strike missiles to multi-megaton intercontinental ballistic missiles, provide the Chinese leadership with various options during conflict escalation [7]. Military Context - The increasing number, types, ranges, and complexities of missiles produced by the People's Liberation Army Rocket Force pose a growing threat to U.S. Air Force assets and facilities [7]. - Wilsbach's background includes extensive experience in air combat, having flown over 6,000 hours in various aircraft, and he has been involved in operations in Iraq and Afghanistan [7]. U.S.-China Military Relations - Wilsbach has previously indicated that the U.S. needs to create challenges for China as it approaches the U.S. as a competitor [8]. - The Chinese government maintains that its nuclear strategy is defensive and aims to keep its nuclear arsenal at the minimum level necessary for national security [9].

Core Viewpoint - The defense sector is experiencing significant growth, driven by increased military spending and foreign trade opportunities, particularly in the context of global geopolitical shifts [1][2]. Group 1: Market Performance - As of June 9, 2025, the CSI Defense Index (399973) rose by 1.52%, with notable increases in constituent stocks such as AVIC Shenyang Aircraft (600760) up 7.86%, Guorui Technology (600562) up 7.22%, and AVIC Xi'an Aircraft (000768) up 4.29% [1]. - The Defense ETF (512670) increased by 1.67%, reaching a latest price of 0.73 yuan, with its total scale hitting 5.183 billion yuan, marking a one-year high [1]. - The Defense ETF has seen continuous net inflows over the past four days, with a peak single-day net inflow of 317 million yuan, totaling 520 million yuan [1]. Group 2: Industry Insights - Following Indonesia's consideration to purchase 10 J-19 fighter jets, Pakistan announced the acquisition of 40 J-35 fighter jets, an AWACS aircraft, and the Hongqi-19 missile defense system [1]. - Guotai Junan Securities suggests that the evolving global political landscape may open new growth avenues for the military industry, recommending companies closely tied to exports [1]. - The analysis indicates that increased defense spending is essential in the current era of great power competition, with domestic demand and foreign trade expected to drive high prosperity in the military industry, maintaining a long-term positive development trend [1]. Group 3: ETF Characteristics - The Defense ETF closely tracks the CSI Defense Index, which includes listed companies under the ten major military groups and those providing equipment to the armed forces [2]. - Among the 13 ETFs tracking the defense sector, the Defense ETF has the lowest management and custody fees at 0.40%, making it unique in its category [2]. - As of May 30, 2025, the top ten weighted stocks in the CSI Defense Index accounted for 44.58% of the index, including AVIC Shenyang Aircraft (600760) and AVIC Xi'an Aircraft (000768) [2].

Group 1 - US stock market saw collective gains last Friday, with Dow Jones up 1.05%, Nasdaq up 1.2%, and S&P 500 up 1.03% [1] - Tesla closed up 3.82%, Google A up 3.25%, Amazon up 2.72%, and other major tech companies like Meta Platforms, Apple, and Nvidia also saw increases [1] - Circle, the first stablecoin stock, surged 29.4% on its second day of trading [2] Group 2 - The US government has suspended licenses for nuclear equipment suppliers to sell products to Chinese power plants [3] - The US State Department has instructed consulates to resume processing international student visas for Harvard University [4] Group 3 - Meta is reportedly in talks with AI startup Scale AI for a potential investment exceeding $10 billion [6] - Boeing has restarted aircraft deliveries to China [7] Group 4 - The Chinese government is reviewing export license applications for rare earth materials, with increasing demand from industries like robotics and electric vehicles [12] - Following the implementation of export controls on rare earths, prices have surged, and the domestic and international price gap is expected to narrow as export licenses are gradually issued [13] Group 5 - The AI sector is experiencing significant advancements, with domestic AI models expected to see rapid development and increased demand, leading to a surge in capital expenditures from cloud giants [15]