HK Stock Market Move | AVICHINA (02357) up nearly 6% again, the company is expected to directly benefit from military spending growth and expansion of the military market space.

AVICHINA (02357) rose nearly 6% again. As of the time of writing, it rose 5.49%, reaching 4.42 Hong Kong dollars, with a turnover of 1.45 billion Hong Kong dollars. Zhonghang Securities pointed out that on March 5, the Third Session of the Fourteenth National People's Congress revealed that China's defense budget for 2025 is 1.784 trillion yuan, an increase of 7.2% year-on-year, maintaining a growth rate of over 7% for the fourth consecutive year. In addition, the government work report has clearly proposed to "accelerate the development of new combat capabilities" and "promote the safe and healthy development of emerging industries such as commercial aerospace and low-altitude economy". Several "big military industry" race tracks will continue to expand the military market space. Western previously pointed out that AVICHINA is the comprehensive aviation equipment listed platform under the Aviation Industry Corporation of China, controlling four A-share listed companies including AVICOPTER PLC, Jiangxi Hongdu Aviation Industry, AVIC Airborne Systems, and Jonhon Optronic Technology. The bank pointed out that the speed of outfitting demand is accelerating, the replacement of military equipment is imminent, and foreign trade business may become a growth point for the trainer aircraft industry; the injection of domestic large aircraft will bring in incremental volume, and its subsidiaries are core suppliers.