AVIC Chengdu Aircraft, a leading Chinese fighter jet manufacturer based in Sichuan province, saw its shares rise for the second consecutive session on June 26 amid easing geopolitical tensions. The rally followed news of a ceasefire between Israel and Iran, boosting sentiment in Chinese defence and technology stocks. The stock’s upward trend has taken monthly gains past 7%, continuing a strong rebound after steep losses earlier this year.
AVIC Chengdu Aircraft Co. Ltd., headquartered in Sichuan province, China, and known for manufacturing the J-10 fighter jet, saw its share price climb for the second consecutive session on June 26. The increase followed easing geopolitical tensions between Israel and Iran, with a ceasefire helping calm global markets and bolstering Chinese defence and technology stocks.
Shares of AVIC Chengdu Aircraft rose over 3.2% in intraday trade, reaching a high of 84.11 yuan, following a 1.5% gain in the previous session. The two-day surge of 4.7% comes after a 5% drop earlier in the week. For the month of June, the company’s stock has now gained more than 7%, building on a 31% rise recorded in May.
The Israel-Iran ceasefire reduced fears of major disruptions in oil markets, helping lift investor sentiment across Asia. China’s CSI Defence Index rose by 1.9% on the day, with AVIC Chengdu among the top gainers.
Founded as part of the Aviation Industry Corporation of China (AVIC), AVIC Chengdu plays a critical role in China’s military aviation development and is widely recognized for producing advanced fighter aircraft, including the J-10 series used by the People’s Liberation Army Air Force.
The stock has regained market attention since May, after news that Pakistan deployed J-10 fighter jets during regional tensions with India, although with limited success.
AVIC Chengdu’s technical chart shows a breakout above a key support level of 79 yuan. Analysts say that holding this level could push the stock toward the 105 yuan mark, continuing its upward trend as investor appetite returns to defence-linked stocks.
The latest gains reflect renewed confidence in China’s military-industrial sector amid improving regional stability and strong sector momentum.