Five domestic military shares soared to the 10 percent trading limit in Tuesday’s morning trading session. All have touched the trading ceiling for the second trading day.
Of those shares, Suna Co saw its share price touch the trading ceiling on Thursday, Monday and Tuesday. Shares of Baota Industry Co have surged to the trading ceiling for four trading days since Wednesday. On Friday, shares almost reached the ceiling, rising 9.92 percent.
Shares of Beijing Tongtech Co and Yinbang Clad Material Co both surged to the trading limit on Monday and Tuesday.
Overall, military shares rose by 0.4 percent in the Tuesday morning session. On Monday, they soared by 3.91 percent.
Analysts from Dongxing Securities said that the military stock sector might usher in “10-year-level” opportunities due to the low valuations of military shares and the rapid growth of the sector.
China’s military industry has maintained an annual growth of about 15 percent over the past four years, and the growth is expected to further speed up, the analysts said.
A research report published by Galaxy Securities also noted that military stocks have been boosted by the upcoming, grand military parade which will be held on China’s National Day.