AVIC Chengdu, maker of the J-10 fighter jet, rebounded 5.6% on May 19 after two days of losses, amid geopolitical developments and market volatility.
Shares of AVIC Chengdu Aircraft Industry Group, the Chinese defense manufacturer best known for producing the J-10 fighter jet, rebounded sharply on Monday after suffering two consecutive sessions of losses.
The stock surged 5.6% intraday, reaching a high of 90.99 yuan, up from its previous close of 86.08 yuan. This sharp uptick helped recover the 4.8% decline seen over the last two trading days.
The recovery comes amid heightened investor interest in defense-related stocks, following geopolitical remarks made by Indian Prime Minister Narendra Modi regarding terrorism and regional security. Although no direct link was made between Modi’s comments and the stock’s movement, traders suggest that such political signals often influence sentiment in the aerospace and defense sector.
AVIC Chengdu has experienced a volatile trading pattern recently, with sharp swings in response to both domestic policy cues and regional developments. Analysts suggest that while short-term market reactions are common in defense equities, the long-term fundamentals of AVIC Chengdu remain strong, backed by government contracts and the strategic importance of the J-10 program.
Market watchers are now eyeing further catalysts such as upcoming defense deals, international military expos, and regional policy shifts, which could impact the stock’s trajectory in the near term.
Despite Monday’s gains, AVIC Chengdu shares remain below their 52-week high and are navigating broader market uncertainty tied to both macroeconomic factors and foreign policy developments.
