China Defense Stocks In Focus On Victory Day Parade

Li Chen
03 Sep, 2025
Hong Kong

The stock market rally in China and Hong Kong paused for the second consecutive day amid a lack of new buyers and valuation worries. 

The Hang Seng Index decreased 0.5%, and the mainland-focused CSI 300 index dropped nearly 1% as the market rally lost steam after benchmark indexes hovered near multi-year highs.

The CSI 300 index has soared nearly 30% over the last five months, after the monthly exports data showed little impact of the sharp escalation of U.S. tariffs. 

Over the last four months, the sustained growth in direct and indirect goods exports to the U.S. eased worries linked to the possible international trade disruption.

The five-month-long market rally got an additional boost as retail investors chased returns and rotated into stocks from fixed-income products. 

Market sentiment improved further after better-than-expected interim results from leading technology, industrial, and consumer companies.

Defense-related stocks were in focus as investors reviewed the massive military parade in Beijing to commemorate the 80th anniversary of China's victory over Japan in World War II. 

 

China Indexes and Stocks 

The Hang Seng Index decreased 0.5% to 25,375.79, and the mainland-focused CSI 300 index fell 0.9% to 4,451.16. 

Zijin Mining Group advanced 1.4% to HK$27.48 following the bullion price reaching a new record high in New York. 

Alibaba Group Holding decreased 0.5% to HK$134.10, Tencent Holdings decreased 0.2% to HK$599.50, and Meituan fell 1% to HK$99.95. 

China Shipbuilding Group decreased 0.2% to ¥22.40, CSSC Hong Kong Shipping decreased 1.5% to HK$1.86, NORINCO International dropped 1.9% to ¥11.17, and CEC Cyber Security Technology Co. Ltd. fell 2% to ¥17.79.