J-10 Fighter Jet Maker Sees Stock Spike Before Key US-Pakistan Meeting

AVIC Chengdu Shares Surge Nearly 10% Ahead of Trump-Munir Meeting.

Shares of J-10 fighter jet manufacturer AVIC Chengdu Aircraft Co. surged during intraday trading on Wednesday, climbing nearly 10% ahead of a high-stakes meeting between former U.S. President Donald Trump and Pakistan’s Army Chief, General Asim Munir.

At the time of reporting, AVIC Chengdu shares were trading at CNY 88.93, up 4.14%, after opening at CNY 85.48. The stock has risen by 12% over the past five trading sessions, reaching an intraday high of CNY 93.88.

This marks General Munir’s first meeting with Trump following heightened India-Pakistan tensions in May, triggered by India’s launch of Operation Sindoor in response to a deadly terror attack in Pahalgam, Kashmir, which left 26 tourists dead.

Stock Reaction Tied to Geopolitical Developments
AVIC Chengdu Aircraft Co. — a key Chinese defense contractor and producer of the J-10 fighter jet — had previously seen its stock price weaken, dropping over 17% as regional tensions eased. The J-10 was reportedly deployed by Pakistan during the peak of border hostilities.

However, the Pahalgam terror attack and India’s retaliatory military operation spurred renewed investor interest in Chinese defense stocks. Between April 30 and May 12, AVIC Chengdu’s share price soared from CNY 58.75 to CNY 95.86, marking a 64% rally amid speculation of a broader conflict and potential uptick in regional arms demand.

Other Chinese defense companies also experienced sharp gains during the period, as markets reacted to the possibility of increased procurement of fighter jets, missiles, and military systems.

The stock’s recent cooling followed Indian Prime Minister Narendra Modi’s public rebuttal of Pakistan’s claims that Chinese-made jets were involved in the reported destruction of the Indian Air Force’s Adampur airbase.