Understanding the Market | AVICHINA rises over 3% as Indonesia considers purchasing J-10 fighter jets; institutions optimistic about military trade potential raising industry ceiling

AVICHINA rose over 3%, as of the time of writing, up 3.25%, reported at HKD 4.13, with a transaction volume of HKD 73.5456 million. In terms of news, according to CCTV News, on June 5 local time, the Indonesian military announced that the Indonesian government is conducting a feasibility assessment for the procurement of Chinese-made J-10 fighter jets. Indonesian Deputy Minister of Defense Wahyu stated that this move aims to enhance the modernization of the Indonesian Air Force's combat capabilities while considering the cost-effectiveness of the defense budget. Wahyu pointed out that the performance of the Chinese J-10 fighter jet in the India-Pakistan conflict is one of the important factors for Indonesia to consider this model. Dongxing Securities believes that as the global demand for military trade continues to deepen its understanding of China's military trade equipment production capacity, performance, and cost-effectiveness advantages, the capabilities and potential of China's military trade will once again raise the ceiling of the military industry. Bank of China International previously stated that AVICHINA, with its dual layout in the military and civil aviation markets, will continue to benefit from the strong demand in the aviation industry