JF-17 maker Chengdu Aircraft shares close 20 per cent higher

BEIJING: Shares of China’s Chengdu Aircraft Corporation Ltd surged on Thursday, extending a sharp two-day rally amid escalating tensions between India and Pakistan, following reports that Pakistani-operated JF-17 fighter jets had downed three Indian Rafale aircraft.

The stock closed 20.01 per cent or 13.87 yuan higher at 83.20 yuan in Shenzhen trading, rising from 69.33 yuan in the previous session. Intraday data showed a strong upward trajectory, with the price climbing from an early low of 71.03 yuan at 9:32 AM CST to 80.26 yuan by 1:44 PM CST, before finishing near session highs.

The defence contractor, a subsidiary of state-owned Aviation Industry Corporation of China (AVIC), manufactures both the JF-17 Thunder—developed jointly with Pakistan—and the J-10C fighter jet. Chengdu Aircraft shares have gained 36.2 per cent over the past two sessions and are up 44 per cent over the past month.

In the last five trading days, the stock has advanced 41.6 per cent. Over the past 52 weeks, it has traded in a range of 38.18 yuan to 96 yuan.

The surge comes amid heightened interest in the company’s combat aircraft portfolio. Pakistan’s Air Force operates both the J-10C, also known as the Vigorous Dragon, and the JF-17 Thunder. Reports of combat activity involving these jets have drawn investor attention to the firm’s strategic importance and export potential.

Trading volumes and momentum suggest investors are reacting strongly to the geopolitical developments in South Asia.

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