Boeing shares fall 4% after China orders 200 planes

The U.S. President stated during an interview with an American news network on Thursday evening that China had decided to purchase 200 passenger aircraft; however, he emphasized that this figure is lower than market analysts' predictions.


According to international media reports, investors had expected China to order at least 500 of the company's new-model aircraft. As a result, the announcement of a lower figure led to a negative market reaction and a 4.1 percent drop in the company's shares.


Experts say that Chinese airlines' decisions to purchase aircraft are typically coordinated with the country's government, and the level of political relations between Washington and Beijing directly impacts the volume of these orders.


This American company is striving to maintain its position in China's vast aviation market amid competition with its European rival—a market that ranks as one of the world's most important centers for aviation industry growth.


This order is also smaller in comparison to the major 2017 deal, when the U.S. President traveled to Beijing. At that time, China had registered an order for 300 aircraft.


Analysts believe that to meet the rising demand for air travel, China will need thousands of new aircraft in the coming years, with projections estimating that around 9,000 new planes will join the country's airline fleet by 2045.


Meanwhile, the CEO of this aircraft manufacturer, who was present on the recent trip with the U.S. President, had previously stated that he was counting on U.S. government support to secure a major deal with China. Nevertheless, it remains unclear why Beijing ultimately registered an order far below market expectations.

The stock value of the largest U.S. aircraft manufacturing company fell after the U.S. President announced that China had agreed to purchase 200 aircraft from the company. Following the release of this news, the company's shares dropped by more than four percent.

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