China Defense, Surveillance Stocks Do Best Since Xi's Power Grab

Photographer: Giulia Marchi/Bloomberg
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Investors have piled into stocks tied to Chinese military spending since the Communist Party moved to repeal presidential term limits.

Defense-related shares dominate the top performers list for the CSI 300 Index this week, with AECC Aero-Engine Control Co. surging 26 percent, China Avionics Systems Co. climbing 16 percent and surveillance equipment maker Zhejiang Dahua Technology Co. rising 9 percent. Overall, the stock market has fared poorly since the news was announced, with the gauge falling 1.5 percent.