Aviation Industry Corporation of China (AVIC), the country’s dominant aerospace and defence contractor, plans to raise more money in the mainland and Hong Kong stock markets to bankroll future growth and develop its first top-of-the-line jet engine.

Beijing is opening up a sector traditionally shielded from competition and public scrutiny as it taps private-sector funds to help speed up the development of its aviation and defence firms to compete with global giants such as Lockheed Martin Corp.