Summary · why it matters
On the morning of July 3, 2026, the A-share military sector strengthened amid volatile trading. AECC Aviation Power, Ganhua Science and Industry, Chengchang Technology, and Aerospace Development hit their daily limit up, while Aileida and Chaojie Shares rose over 10%. In terms of news, the first Western Commercial Aerospace Conference was held in Xi'an, clarifying the establishment of full-chain capabilities and releasing a regional three-year action plan. In 2026, multiple domestic liquid-fuel rockets will undergo intensive test flights and recovery, which is expected to significantly reduce launch costs. In the ETF market, the CSI National Defense Index rose strongly by 2.31%, and the GF Military ETF rose 2.34%, with an intraday high of over 3%. The CSI National Defense Index it tracks has a latest price-to-earnings ratio of only 69.19 times, at the 20.91% percentile over the past two years, indicating historically low valuation. The index's combined weighting of aviation equipment and aerospace equipment exceeds 37%, and the top ten constituent stocks account for 38.3% of the total.