Chinese fighter-jet maker Avic Chengdu stock tumbles nearly 25% in 5 sessions, here’s why

Shares of Avic Chengdu, a Chinese fighter aircraft manufacturer listed on the Shenzhen Stock Exchange, have been on a weak run, plunging nearly 25% in just five trading sessions. The development is significant as the company is the country’s largest defence firm by market capitalisation.

Interestingly, the decline began on September 3, the same day China held its once-in-a-decade military parade showcasing its aerial firepower. Despite the recent slump, Avic Chengdu shares are still up 27% over the past six months and more than 17% year-to-date.

Prior to the fall, the stock had gained after Pakistan claimed it used the aircraft against India to shoot down jets during the conflict triggered by the Pahalgam attack in Jammu and Kashmir. These claims, however, were denied by the Indian armed forces.


China marked 80 years since Japan’s defeat in World War II with a grand military parade in Beijing, attended by more than 25 foreign leaders. The event drew global attention as it brought together Chinese President Xi Jinping, Russian President Vladimir Putin, and North Korean leader Kim Jong Un, who made their first joint public appearance.

Standing side by side atop Tiananmen Gate Tower, Xi was flanked by Putin and Kim as Chinese troops fired a gun salute and raised the national flag, according to a Bloomberg report.

Meanwhile, the Hang Seng China Aerospace and Defence Index was trading nearly 1% lower on September 9. On a year-to-date basis, however, the index is still up about 7%. Zhuzhou Hongda, another major defence firm, also mirrored weak trends, slipping 7% in the last five sessions.

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