Understanding the Market | AVICHINA rises nearly 6% again, the company is expected to directly benefit from the increase in military spending and the expansion of the military industry market space

AVICHINA rose nearly 6% again, as of the time of writing, up 5.49%, reported at HKD 4.42, with a transaction volume of HKD 145 million. Dongxing Securities pointed out that on March 5, the third session of the 14th National People's Congress disclosed that China's defense budget for 2025 is set at CNY 1,784.665 billion, a year-on-year increase of 7.2%, maintaining a growth rate of over 7% for the fourth consecutive year. In addition, the government work report clearly stated to "accelerate the development of new quality combat capabilities" and "promote the safe and healthy development of emerging industries such as commercial aerospace and low-altitude economy," indicating that multiple "large military industry" sectors will continue to expand the military market space. Western Securities previously pointed out that AVICHINA is a comprehensive listed platform for aviation equipment under the Aviation Industry Corporation of China, holding stakes in four A-share listed companies: AVIC Helicopter, Hongdu Aviation, AVIC Aircraft, and AVIC Optoelectronics. The firm noted that demand for equipment is accelerating, military modernization is imminent, and foreign trade business may become a growth point for the trainer aircraft industry; the injection of new domestic large aircraft will provide additional volume, with several subsidiaries being core suppliers