(Yicai) June 17 -- China recently established a joint fund for fundamental research of large aircraft, with the shares of several companies in the aviation supply chain surging.

The fund was jointly set up by the Ministry of Industry and Information Technology and the National Natural Science Foundation of China, Xinhua News Agency reported on June 14. It will focus on large aircraft development needs, including safety and reliability, green environmental protection, smart and high efficiency, and economic convenience, conducting basic, forward-looking, and innovative research.

Chengdu ALD Aviation Manufacturing [SHE: 300696] closed 12.5 percent higher at CNY16.35 (USD2.25) a share in Shenzhen today. Chengdu Lihang Technology's stock [SHA: 603261] soared by its daily trading limit of 10 percent to CNY30.71 in Shanghai, while Finework Hu Nan New Energy Technology [SHE: 301232] rose 5.1 percent to CNY28.10.

The successful development and operation of the C919, China's first homegrown large passenger jet, has reflected the comprehensive upgrade of the large aircraft supply chain, according to a research report by Soochow Securities. Many private firms manufacture aircraft bodies, aero-engines, in-plane systems, and related components.

The accelerated development of the domestic large aircraft supply chain and the rising localization rate will likely continue to boost the growth of suppliers in the raw materials, electronic and forged structural components, and plane manufacturing links, Soochow Securities noted.

Chinese companies producing supporting parts and components for the C919 account for more than 60 percent of the firms within the related supply chain, according to Huatai Securities. With the growing localization rate, the figure will gradually increase, it added.

Editor: Martin Kadiev