Defense shares set to rise

Analysts say low valuations, solid fundamentals, border standoff, movie are catalysts

Shares in high-growth Chinese defense companies whose current valuations are low may be in hot demand in the next two to three years, following a gradual improvement in industry fundamentals, experts said.

On Aug 5, more than 30 defense shares rose 5 percent with nine stocks, including Addsino Co Ltd, hitting the daily upper limit, following Sino-Indian border tensions.