AVIC Capital Co, which helps finance China's state aerospace firms, will lead a capital injection of up to 4.99 billion yuan ($779.91 million) into two jet fighter makers in a move aimed at shoring up key military manufacturers.

Also participating in the investment are four other listed AVIC group companies, including AviChina Industry & Technology Co, China Avionics Systems Co, AVIC Aircraft Co and AVIC Electromechanical Systems Co , according to the stock exchange filing.

AVIC Capital alone will invest as much as 1.9 billion yuan in the two Chinese aircraft makers, it added.

China is moving to secure its status as a global power and is rapidly improving its military preparedness. Its air force has never been exposed to actual combat and analysts say it is unclear how it would perform.

Chengdu Aircraft Industry Group makes FC-1 Xiaolong, JF-17 fighter jets, while Shenyang Aircraft Industry Group makes F-5, FT-1, F-6 as well as Red Flag No.1 missiles.

AVIC Capital, in its stock exchange filing, refers to the complex security situation between China and some of its neighbours as a long-term business opportunity which could generate "high returns".

AVIC Capital's shares rose 6.09 percent in late morning trade, leading a 4.2 percent fall of the benchmark index . AVIC Aircraft's shares, however, fell 7.7 percent, with AVIC Electromechanical down 5.7 percent.

reuters.com