China Avic Avionics Equipment Co., a listed unit of the nation’s biggest state-owned plane maker, headed for its second daily gain in 10 trading sessions after the country successfully landed a fighter jet on its first aircraft carrier.
The stock rose as much as 2.7 percent in Shanghai and was trading 1.9 percent higher at 13.74 yuan at the mid-day break. The benchmark Shanghai Composite Index fell 0.04 percent.
A J-15 fighter, built by another unit of Aviation Industry Corp. of China, touched down on the carrier Liaoning, the first time a Chinese aircraft has landed at sea, the official Xinhua News Agency reported Nov. 24. The Liaoning, named after a Chinese province, was commissioned in September.
“It’s the influence of the aircraft carrier fighter jet, as it was launched successfully,” said Ye Guoji, an Shenzhen-based analyst at Ping An Securities Co. who recommends buying shares of China Avic Avionics. “In the longer term, it’s not a huge impact, unless they build a lot of carriers. They don’t need that many anyway. But overall for them, it’s good news.”
— With assistance by Alexandra Ho