Chinese aircraft maker AVIC Chengdu shares drop by 2% after Bangladesh jet crash

The shares of Chinese aircraft maker AVIC Chengdu Aircraft on Tuesday (July 22) dropped by up to 2 per cent during trading. This comes after Bangladesh Air Force fighter jet (F-7 BGI aircraft) crashed on Monday, which hit a crowded school in Dhaka. The jet experienced a ‘mechanical fault’, just moments after the takeoff and crashed into a two-story building of Milestone School in Dhaka. The crash led to the deaths of at least 31 people, including 25 children and the pilot. The crash also injured more than 170 people, in which mostly are students. This plane crash is considered as one of the worst and deadliest plane accidents in Bangladesh’s aviation history.

The jet involved in this crash was the Chinese made F-7 BGI, its an updated version of the Chengdu F-7 aircraft and is based on the old Soviet MiG-21 aircraft design. Although in 2010, companies stopped the making of J-7 jets as these jets are seen as outdated by global standards but some countries like Bangladesh still use them for training and light combat.

According to a Bloomberg report, Bangladesh have bought 57 F-7 jets from China between 1989 and 2011 and became the fourth largest buyer of these jets.

Also Check - China-made Bangladesh air force jet crashes into school ...

Stock Price

After rising for four days, AVIC Chengdu Aircraft’s share price suddenly fell by 2 per cent to 86.22 yuan in intraday trading (involves buying and selling financial instruments, like stocks within the same trading day) on Tuesday (July 22). The share had been opened at 87.30 yuan, according to reports.

Following strong high gains in June (up to 14.59%) and May (up to 30.62%), The AVIC Chengdu Aircraft’s share is down by 2 per cent in July. This is because of the recent Bangladesh plane crash, which involves F-7 BGI aircraft, made by AVIC Chengdu Aircraft Corporation.