After China's first aircraft carrier formally entered service on Tuesday, many are expecting fierce competition between companies to build China's first carrier battle groups.

Sinolink Securities conservatively estimated that the construction of a complete carrier battle group would cost 64 billion yuan ($10.09 billion).

To protect the sovereignty of both the East and South China Sea, China might need two carrier battle groups, representing an investment of about 130 billion yuan, Sinolink Securities said.

Chinese stocks related to the defense industry are on the rise since early this month, after Japan attempted to illegally "purchase" the Diaoyu Islands in the East China Sea.

Analysts said that highly related industries, such as equipment manufacturing, power systems and electronic communications, would benefit a lot from the 130 billion yuan in investments.