China's aviation industry announced the deal to export the domestically developed L15 advanced trainer jet to the UAE has been sealed, as it put the latest, aerial refueling-capable variant of the aircraft on display at IDEX defense expo in Abu Dhabi.

Shares of defense-related Chinese firms rose across the board on Tuesday after the nation's state assets regulator pledged to support the rapid development of centrally-administered military-related state-owned enterprises (SOE).

Changshu Guorui Technology Co, based in East China's Jiangsu Province, saw its share price hit the 20 percent daily trading ceiling in Shenzhen's ChiNext market. The company is a high-tech enterprise specializing in the integrated research and development, production and sales of comprehensive electrical and automation equipment and systems for marine engineering.

AECC Aero Science and Technology Co, an aircraft engine and gas turbine parts manufacturer based in Southwest China's Sichuan Province also hit a 10 percent trading ceiling at the Shanghai bourse.

Other defense-related companies listed on the Hong Kong bourse also rose broadly, including CSSC Offshore & Marine Engineering (Group) Co and AVICHINA Industry and Technology.

China's State-owned Assets Supervision and Administration Commission (SASAC) said on Monday that it will encourage and support centrally-administered defense SOEs to "become stronger, better, and bigger", according to a statement released by the regulator on its website.

It also noted plans to guide enterprises to actively support the building of national defense facilities based on their own capabilities and to help maximize national strategic capability.

By upholding the priority of a rapid development, the regulator vowed to continue to enhance the core competitiveness of centrally-administered SOEs, actively promote their high-quality development, and speed up the building of world-class enterprises.

Analysts from China Securities recently said that the overall performance of military-related enterprises has fluctuated, but the performance of upstream enterprises in the industrial chain remains "positive".

It is expected that the upstream boom will be transmitted to downstream, providing strong support for integrated defense enterprises, China Securities said, suggesting investors to buy in.

Global Times