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.
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.
CSI Defense Index Surpasses CSI 300 Index So Far This Year
While many world leaders will be absent from the event, the parade has drawn attention from investors betting on China’s defence expansion and tech integration.
See also: China probes ex-securities regulator for alleged violations
Still, history shows that defence-related rallies leading up to the event have faded shortly after, according to Minsheng Securities analyst Yin Huiwei. The stocks are “likely to go down or see a correction soon after the parade, as expectation has been priced in,” he added.
Here are the sectors and stocks to watch:
Jets and drones
See also: Trust and performance in China
Traders are closely watching Avic Chengdu Aircraft Co, the country’s largest defence firm by market capitalisation, and J-35 stealth fighter jet producer Avic Shenyang Aircraft Co on expectations of increased shipments.
J-10C jet maker Avic Chengdu’s stock has surged 48% this year, partly boosted by Pakistan’s claim in May that it used the aircraft to shoot down Indian jets. Meanwhile, aircraft parts supplier Chengdu ALD Aviation Manufacturing Corp has climbed more than 84% in 2025.
Rehearsal footage has featured advanced collaborative combat aircraft — uncrewed drones designed to operate alongside traditional fighters. This puts Avic Chengdu UAS Co, a specialist in unmanned systems, in investor focus.
Ground armour and sea
While tanks are expected to roll through Tiananmen Square, analysts on the lookout for any new unmanned platforms across land, air and sea, said Bloomberg Intelligence analyst Eric Zhu.
Norinco International Cooperation, China’s top armour manufacturer and supplier of main battle tanks to the People’s Liberation Army, is a key player in unmanned ground vehicles. Shares are up 16% this year.
The biggest equity winners are likely in the defence supply chain. Ammunition maker Anhui Great Wall Military Industry Co has surged more than 500% in 2025. Inner Mongolia First Machinery Group Co, which produces military equipment, has nearly tripled.
For more stories about where money flows, click here for Capital Section
The parade is also expected to highlight the latest anti-ship missiles and large uncrewed underwater vehicles. China CSSC Holdings Ltd, a major naval shipbuilder, stands to benefit from increased visibility.
AI and robots
Artificial intelligence is expected to feature prominently at China’s military parade as defence firms ramp up efforts to integrate the technology. Beijing Huaru Technology Co, which develops battle simulation platforms using AI, has seen its shares climb 87% over the past year, though gains in 2025 are around a modest 5%.
Investor attention is also turning to ground mobile robots, including robotic dogs, which have garnered interest since the parade was announced. Shares of robotic dog maker Hangzhou Shenhao Technology Co spiked after officials unveiled the event.
“I’m most curious on new tech around drones and robots, whether they might introduce something new that perhaps might have been thought to be many years away or belongs to sci-fi,” said Xin-Yao Ng, a fund manager at Aberdeen Investments.
