Chinese defence stocks experienced significant gains, with some rising by up to 20% on Thursday. This sharp rise, totaling 36% in just two days, comes as tensions between India and Pakistan escalate following India's Operation Sindoor. The development has spurred a surge in Chinese defence-related stocks, despite the ongoing regional tensions.
The Chinese defence company, which manufactures the J-17 and J-10C fighter aircraft, has seen a notable increase in stock value. Pakistan’s Air Force is known to operate the J-10 Vigorous Dragon and JF-17 Thunder jets, both of which are produced by AVIC Chengdu Aircraft, a subsidiary of China's state-owned AVIC.
Shares of AVIC Chengdu Aircraft, listed on the Shenzhen Stock Exchange, surged 20% on Thursday after a 17.05% gain on Wednesday—its most significant two-day rally since last October. In total, the stock has risen 36% since India’s Operation Sindoor, and over the past month, it has gained 53%.
AVIC Aerospace, another unit of AVIC that produces military aircraft and helicopters, saw its Hong Kong-listed shares rise over 6%.
The sharp stock movement follows India’s announcement on Wednesday that it had conducted precision strikes on terror-linked locations inside Pakistan and in Pakistan-occupied Kashmir (PoK). The Ministry of Defence stated that nine terror launchpads were hit in response to recent threats and provocations.
These strikes come after last month’s terrorist attack in Pahalgam, Jammu and Kashmir, which claimed 26 lives.
Amid reports that more than 60% of China’s arms exports between 2020 and 2024 went to Pakistan, highlighting Beijing’s role in arming India’s neighbor.
Other Chinese defence-related stocks like Chengdu Tianjian Technology, Sun-Create Electronics, and Chengdu ALD Aviation also rallied nearly 10%, reflecting bullish sentiment on China’s growing defence exports — much of it to Pakistan.
Meanwhile, there were unconfirmed reports, many debunked by fact-checkers, of Pakistan shooting down Indian fighter jets involved in Operation Sindoor. In response to an article by the Chinese state-run Global Times, the Indian Embassy cautioned the media outlet for spreading unverified claims regarding Indian military operations.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
The Chinese defence company, which manufactures the J-17 and J-10C fighter aircraft, has seen a notable increase in stock value. Pakistan’s Air Force is known to operate the J-10 Vigorous Dragon and JF-17 Thunder jets, both of which are produced by AVIC Chengdu Aircraft, a subsidiary of China's state-owned AVIC.
Shares of AVIC Chengdu Aircraft, listed on the Shenzhen Stock Exchange, surged 20% on Thursday after a 17.05% gain on Wednesday—its most significant two-day rally since last October. In total, the stock has risen 36% since India’s Operation Sindoor, and over the past month, it has gained 53%.
AVIC Aerospace, another unit of AVIC that produces military aircraft and helicopters, saw its Hong Kong-listed shares rise over 6%.
The sharp stock movement follows India’s announcement on Wednesday that it had conducted precision strikes on terror-linked locations inside Pakistan and in Pakistan-occupied Kashmir (PoK). The Ministry of Defence stated that nine terror launchpads were hit in response to recent threats and provocations.
These strikes come after last month’s terrorist attack in Pahalgam, Jammu and Kashmir, which claimed 26 lives.
Amid reports that more than 60% of China’s arms exports between 2020 and 2024 went to Pakistan, highlighting Beijing’s role in arming India’s neighbor.
Other Chinese defence-related stocks like Chengdu Tianjian Technology, Sun-Create Electronics, and Chengdu ALD Aviation also rallied nearly 10%, reflecting bullish sentiment on China’s growing defence exports — much of it to Pakistan.
Meanwhile, there were unconfirmed reports, many debunked by fact-checkers, of Pakistan shooting down Indian fighter jets involved in Operation Sindoor. In response to an article by the Chinese state-run Global Times, the Indian Embassy cautioned the media outlet for spreading unverified claims regarding Indian military operations.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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