On August 7, all three major A-share indices rose collectively, while the defense sector, which surged yesterday, opened lower and led the declines. As of 9:40, the Aerospace ETF (159227) fell 1.07%, with a turnover of 24.72 million yuan, ranking first among similar products. Holdings such as Great Wall Military Industry rose over 6%, followed by Maxin Lin, New Strong, HuaQin Technology, Aerospace Electronics, and Hongdu Aviation.

With the grand military parade approaching, the defense sector's popularity continues to rise, showing repeated activity, and pullbacks may present layout opportunities. Coupled with the final year of the "14th Five-Year Plan," the implementation of the military's "14th Five-Year Plan" has entered a critical phase of integrated capability delivery, accelerating order demand and driving a recovery in overall industry chain sentiment.

Shenwan Hongyuan noted that while short-term upward pressure exists for some parade-catalyzed stocks, most defense-related stocks still have upward momentum. As market attention on the defense sector grows and the "15th Five-Year Plan" gradually advances, combined with military equipment renewal cycles and new arms trade dynamics, the sector may achieve dual improvements in fundamentals and valuation. Investors are advised to maintain heightened focus.

The Aerospace ETF (159227) tracks the China Securities Aerospace Index, focusing on air and space capabilities within the defense sector. The index allocates 97.86% to defense under Shenwan's primary industry classification, selecting top companies in aerospace equipment, military electronics, and ground weaponry, aligning with advanced productivity trends for one-click investor positioning.