HK Stock Market Move | Military industry stocks continue their recent uptrend. AVICHINA (02357) surged more than 5%. Institutions say that the national defense and military industry sector has long-term growth certainty.

Military stocks continue recent gains, as of press time, AVICHINA (02357) rose by 4.69% to HK$4.46; Cssc Offshore & Marine Engineering (00317) rose by 2.49% to HK$14.02; CHINA AEROSPACE (00031) rose by 1.12% to HK$0.45. On the news front, the State Council Information Office confirmed at a press conference on June 24 that a military parade will be held on September 3. All the equipment on display will be domestically produced main battle equipment currently in service. In addition to showcasing new traditional weapons and equipment, the parade will also feature new types of combat forces such as unmanned intelligence, underwater combat, cyber warfare, and hypersonic capabilities. Furthermore, the military program "Lijian" on China Central Television's defense and military channel released a video showing a J-16 aggressively deterring foreign aircraft. Northeast Securities pointed out that the global geopolitical situation is tense, and sees investment opportunities in the military sector. The brokerage firm stated that since 2023, the fundamentals of the defense industry have been affected by personnel adjustments, leading to delays in orders and a decline in industry sentiment. However, at present, with the final year of the "14th Five-Year Plan" approaching, disruptions in the defense industry have been largely eliminated. Downstream demand is showing a recovery, and with the 2027 construction goals looming, long-term objectives provide clear guidance for industry development: achieving modernization of national defense and the military by 2035, and building a world-class military by 2050. With demand recovery and gradual optimization of production capacity structure, the defense and military industry sector is expected to see significant improvement, with high security margins and long-term growth certainty.