Avic Chengdu share price: Shares of Chinese defence stock, Avic Chengdu, tumbled in trade on Monday, September 15, as investors booked gains following a three-day rally and amid the US-China trade talks. Other defence stocks in the Chinese stock market traded with cuts, with the index down nearly 0.75% in the afternoon deals.
Avic Chengdu share price trend
Avic Chengdu, maker of J-10 fighter jets, tumbled in trade and shed 2% of its value. The fall comes following a three-day rally wherein the defence stock gained over 4%.
Meanwhile, Avic Chengdu shares are down 20% so far in September, after a nearly similar rise in August.
Despite this volatility, the J-10 fighter jet maker’s stock remains one of the best-performing defence stocks in the Chinese market in a year. It has offered multibagger gains of 104% in a year.
US-China trade talks
The pullback in Chinese defence stocks seen amid the US-China trade talks can be attributed to defence-related firms often being at the centre of US tech restrictions.
The latest round of talks between US and Chinese officials in Madrid centred around TikTok, tariffs and the economy, a US government official said, offering no further details, as per a Reuters report.
This is the fourth round of negotiations in four months.
According to a Financial Times report, last month, China wanted the US to ease export controls on chips critical for artificial intelligence as part of a trade deal. US export controls hurt China’s defence R&D by restricting access to critical components and slowing its technological development. While it remains to be seen if any development on this front follows amid the ongoing trade talks.
Additionally, US President Donald Trump proposed that the NATO nations impose tariffs of 50% to 100% on China, further complicating the trade war between the world’s two largest economies.
A potential news conference regarding trade talks is likely on Monday afternoon, indicating that the talks could wrap up quickly, a Reuters report added.
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