The defense ETF Penghua is on the rise, as the geopolitical situation escalates, the military industry sector is rising against the trend

The geopolitical situation in the Middle East has escalated, and the military industry sector has risen against the trend. U.S. President Trump stated that the conflict with Iran has reached a "significant day," and the U.S. military has destroyed multiple targets. CITIC Securities expects global military spending to reach USD 2.72 trillion in 2024, marking the largest increase since the Cold War. The U.S. has proposed to raise the defense budget for fiscal year 2027 to USD 1.5 trillion. China's defense budget for 2026 is set at CNY 1,909.561 billion, a year-on-year increase of 7%. As of March 30, the CSI Defense Index has risen by 0.27%, and the Penghua CSI Defense ETF has increased by 0.45%