AVIC Chengdu share price: Despite simmering tensions between neighbouring countries , shares of Chinese defence stock AVIC Chengdu have been in a downtrend — a reflection of investor fatigue.
AVIC Chengdu’s stock is seeing a pullback following a sharp run-up in the earlier part of 2025 as the J-10 was used in a recent conflict between Pakistan — China’s close defence partner — and India. In the month of May, amid the , J-10 fighter jet maker’s stock had gained as much as 31% followed by a 15% rise in June and a 20% rally in August to its peak of 108.93 yuan.
However, the stock is currently trading lower for the third month in a row, down 5.5%. In the previous two months, it has lost almost 18% of its value. For the year, the scrip remains 25% higher, suggesting strong gains for its investors.
Harshal Dasani, Business Head, INVAsset PMS, said, “Technically, AVIC Chengdu trades in a wide consolidation band between CNY 78–108, with volumes tapering post the September spike. The CNY 108–110 zone acts as a supply ceiling, repeatedly rejecting rallies since May, while CNY 77–79 remains a well-tested demand floor, marked by strong absorption and low-volume declines.”
The 50-day moving average has flattened near CNY 85, suggesting neutral momentum, while RSI oscillates in the 40–45 range, reflecting fatigue without capitulation, he said. “Short-term structure leans corrective rather than bearish; unless the CNY 77 support decisively breaks, market makers appear to be rotating inventory rather than exiting positions.”
AVIC Chengdu share price ended unchanged at 80.06 yuan on Thursday, November 27.
Pakistan-Afghanistan conflict
Now, as tensions flare up between Afghanistan and Pakistan, the spotlight is once again back on the Chinese defence stocks, especially AVIC Chengdu.
Fresh tensions erupted between Afghanistan and Pakistan on Tuesday after the Taliban accused Pakistani forces of carrying out a bomb attack in Khost province that killed nine children and a woman. This comes on the heels of last month’s deadly clashes —airstrikes and ground fighting that left dozens dead, marking the worst confrontation since the Taliban’s takeover of Kabul in 2021.
Relations have remained strained as Pakistan accuses the Taliban of sheltering militants responsible for attacks on its soil. The neighbours also failed to renew a fragile truce brokered by Qatar and Turkey in October.
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