China's Hydrogen Bomb Test Yields Sustained 1,000°C Fireball in Military Breakthrough

Hydrogen-based weapon marks energy-tech breakthrough; MCHI ETF outpaces S&P over six months and one year

Summary
  • China tests non-nuclear hydrogen bomb as MSCI China ETF shows resilience amid broader market volatility
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Chinese scientists have successfully tested a new non-nuclear hydrogen-based explosive that generated a fireball exceeding 1,000 degrees Celsius and maintained combustion for over two seconds, according to a South China Morning Post report.

The device, developed by the China State Shipbuilding Corporation's 705 Research Institute, uses magnesium hydride—a solid that stores hydrogen more efficiently than conventional pressurized tanks.

Upon ignition, the material fractures into micron-sized particles, releasing hydrogen that fuels an extended combustion loop. Though its explosive force is 40% that of TNT, the sustained heat is capable of melting aluminum and causing thermal damage over a wide area, making it suitable for military applications requiring directed energy.

The bomb's development aligns with China's ongoing drive for cleaner military technology and dual-use energy innovation. Industrial-scale production of magnesium hydride has been made viable through a new facility in Shaanxi that can now generate 150 tonnes per year using a safer one-pot synthesis method.

While geopolitical developments continue to unfold, investor sentiment toward China-linked assets has remained relatively steady.

The iShares MSCI China ETF (MCHI, Financial) fell 2.31% over the past week—less than the S&P 500's 4.58% drop. Although it underperformed the broader market over the past month, with an 11.25% decline versus the S&P's 8.99%, the ETF showed strength over the past six months, falling just 1.02% compared to the index's 11.89% loss.

Year to date, MCHI is up 5.40%, outperforming the S&P 500's 12.30% slide. Over the last year, the ETF has returned 25.32%, well ahead of the S&P's 3.84%.

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