National Defense ETF Penghua rises over 1%, China successfully launches the Four-Dimensional High-Resolution Satellite 05 and 06.

Commercial aerospace concepts surged on volatile trading, . On the news front, at 6:51 on March 26, 2026, in China at the Taiyuan Satellite Launch Center, using the Long March 2D (Changzheng-2D) launch vehicle, it successfully launched the Four-Dimensional High-Resolution Gaijing No. 05 and 06 satellites. The satellites entered their planned orbits smoothly, and the launch mission was completed successfully. Institutions believe 2026 is likely to become a homegrown commercial space acceleration year.

Shenwan Hongyuan Research noted that during the “Fifteenth Five-Year Plan” period, the fundamentals of the defense industry are expected to continue improving; both the order side and the earnings side will gradually recover, and the delivery and acceptance schedule is expected to return to normal. Combined with the clearly defined centennial goal of building the army, the continued ramp-up of new equipment, and geopolitics acting as a catalyst, the defense industry is entering a new upward cycle of quality improvement and incremental growth. In the long term, the “Fifteenth Five-Year Plan” will place greater emphasis on building advanced combat capability and high-quality modernization, and the equipment-construction pace will continue the trend of “improving quality while making up for quantity.”

As of 13:29 on March 27, 2026, the CSI Defense Index (399973) rose 0.89%. Among constituent stocks, Tian Nan Shares rose 5.51%, Regear Micro-nano rose 3.04%, Guoke Defense rose 2.63%, Inner Mongolia First Machinery rose 2.45%, and Huqin Technology rose 2.30%. The Penghua CSI Defense ETF (512670) rose 1.03%, with the latest price at 0.88 yuan.

The Penghua CSI Defense ETF closely tracks the CSI Defense Index. The CSI Defense Index selects securities of listed companies that belong to the top ten defense industrial group companies, as well as securities of relevant listed companies that provide weapon and equipment to the national armed forces, or that have actual equipment-contracting and sales amount with the military, or have signed contracts, as index samples—so as to reflect the overall performance of defense-industry listed-company securities.

The data show that, as of February 27, 2026, the top ten weight stocks of the CSI Defense Index (399973) are Avicopter Power, Aerospace Electronics, Feilihua, AVIC Shenyang Aircraft, AVIC Optoelectronics, Regear Micro-nano, AVIC Xi’an Aircraft, Western Superconducting, AVIC Aircraft System, and Hage Communications. The combined weight of the top ten accounts for 43.14%.