The share price of China-based AVIC Chengdu Aircraft Industrial Group Co., Ltd., headquartered in Chengdu, Sichuan, surged nearly 15% by June 16, 2025, amid escalating tensions between Iran and Israel. Investors are betting on rising global demand for Chinese defense equipment as conflict risks intensify.
Shares of AVIC Chengdu Aircraft Industrial Group Co., Ltd., a prominent Chinese defense manufacturer headquartered in Sichuan province, surged nearly 15% on June 16, 2025, as the Iran-Israel conflict escalated. The rally, fueled largely by investor sentiment, reflects growing speculation that global geopolitical tensions may drive increased demand for Chinese-made defense equipment, including the company’s J-10 fighter jets.
On Monday, the company’s share price rose by 3.5% to 91.08 yuan, building on an 11.2% jump on June 13. This continued momentum has pushed the company’s stock up 30% in May and another 15% so far in June, following a period of four straight monthly declines earlier in the year.
The resurgence in demand is being tied to both the Iran-Israel conflict and earlier skirmishes involving India and Pakistan, with AVIC Chengdu Aircraft seen as a beneficiary due to China’s expanding role in global defense trade.
AVIC Chengdu Aircraft is part of the Aviation Industry Corporation of China (AVIC), a state-owned aerospace and defense conglomerate responsible for designing and producing advanced military aircraft. The company specializes in the development of China’s modern combat aircraft, including the J-10 multirole fighter.
While analysts such as Dr. Vikas Gupta, CEO of OmniScience Capital, caution that the rally is speculative, others see strong technical support. Anshul Jain, Head of Research at Lakshmishree Investments, noted that the stock broke out of an 18-day cup-and-handle pattern, part of a broader flag formation, and predicts a potential upward move toward 105 yuan if the stock remains above 79 yuan.
The Iran-Israel conflict has intensified in recent days, with Iran reporting 224 fatalities from Israeli airstrikes and Israel confirming 14 civilian deaths following a barrage of over 270 missile attacks from Iran. The ongoing war, now in its third day, has heightened concerns of a broader regional escalation.
Notably, China and Iran signed a 25-year strategic partnership in 2021, covering military, economic, and political cooperation. Although no high-end Chinese defense equipment has officially been supplied to Iran, ongoing global tensions may shift geopolitical dynamics, with China and Russia emerging as key defense suppliers.
As the situation evolves, AVIC Chengdu Aircraft’s stock continues to attract speculative interest, with investors closely watching the region’s developments and China’s potential response.