The CSI Defense Index has jumped 22% so far this year ahead of the parade, outpacing a 14% advance in the broader benchmark. Geopolitical tensions including the conflict between India and Pakistan, which counts China as a key security partner, also lifted the sector.
Shares of Chinese fighter-jet makers, robotics companies and other defence-related firms are in the spotlight as the nation holds a military parade in Beijing on Wednesday.
Investors are focused on equipment upgrades and emerging technology as President Xi Jinping unveils China’s latest drones and hypersonic missiles in an event aimed at showcasing the nation’s military prowess.
