---
title: "The Defense ETF rose nearly 1%, as escalating geopolitical tensions catalyze the military industry market"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/280242637.md"
description: "The geopolitical situation in the Middle East continues to escalate, with the defense ETF rising nearly 1%. Huatai Securities pointed out that in the future, our military's equipment construction will shift from quantitative expansion to qualitative leaps, especially in the fields of unmanned intelligence and advanced weapons. There is an urgent global demand for new defensive measures, and related equipment is entering a development window. The CSI Defense Index rose by 0.99%, with strong performance from constituent stocks. The latest price of the defense ETF is 0.86 yuan, closely tracking the CSI Defense Index"
datetime: "2026-03-24T02:09:12.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/280242637.md)
  - [en](https://longbridge.com/en/news/280242637.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/280242637.md)
---

# The Defense ETF rose nearly 1%, as escalating geopolitical tensions catalyze the military industry market

On the news front, the geopolitical situation in the Middle East continues to escalate, and the defense sector has risen during the trading session.

Huatai Securities pointed out that in the medium to long term, during the "14th Five-Year Plan" period, the equipment construction of our military will shift from "quantity" expansion to "quality" leap, with structural opportunities highlighted in new domains and new qualities, unmanned intelligence and countermeasures, advanced weapons, and low-cost equipment. The conflict underscores the strategic urgency of air defense and missile defense capabilities, with a pressing global demand for new defensive measures such as intercepting drones, electronic jamming, lasers, and high-power microwaves. Our related equipment is ushering in an important development window driven by dual-track military trade exports and domestic countermeasure capability construction.

As of March 24, 2026, 09:51, the CSI Defense Index (399973) rose by 0.99%, with constituent stocks such as Yingliu Co., Ltd. rising by 5.83%, Aerospace Electric rising by 4.10%, Inner Mongolia First Machinery rising by 3.73%, Aviation Materials Co., Ltd. rising by 3.11%, and Hongdu Aviation rising by 2.99%. The Defense ETF (512670) rose by 0.82%, with the latest price reported at 0.86 yuan.

The Defense ETF closely tracks the CSI Defense Index, which selects listed company securities under the ten major military industrial groups, as well as those providing weaponry and equipment to the national armed forces, or related listed company securities that have actual equipment contracting sales amounts or signed contracts with the military, as index samples to reflect the overall performance of listed company securities in the defense industry.

Data shows that as of February 27, 2026, the top ten weighted stocks in the CSI Defense Index (399973) are Aero Engine Corporation of China, Aerospace Electronics, Philihua, AVIC Shenyang Aircraft Corporation, AVIC Optoelectronics, Ruichuang Micro-Nano, AVIC Xi'an Aircraft Industry Group, Western Superconducting Technologies, AVIC Avionics, and Haige Communications, with the top ten weighted stocks accounting for a total of 43.14%

### Related Stocks

- [512670.CN](https://longbridge.com/en/quote/512670.CN.md)
- [399973.CN](https://longbridge.com/en/quote/399973.CN.md)

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