Chinese Defence Stocks Tumble After India-Pakistan Ceasefire
The agreement, reached on May 10, brought an immediate halt to all military actions on land, air, and sea after four days of cross-border escalation.
Chinese defence stocks fell sharply on Tuesday following the announcement of a ceasefire between India and Pakistan. The agreement, reached on May 10, brought an immediate halt to all military actions on land, air, and sea after four days of cross-border escalation.
Table of Contents
India Launches Operation Sindoor
India initiated Operation Sindoor, a coordinated strike targeting 21 terror camps in Pakistan and Pakistan-occupied Kashmir (PoK). This marked a strong military response to increasing cross-border threats.
Pakistan Retaliates with Chinese Weapons
In retaliation, Pakistan launched drone and missile attacks across Jammu, Punjab, and Rajasthan on the nights of May 7 and 8. These strikes targeted both civilian and military infrastructure.
Most of the weapon systems used by Pakistan were of Chinese origin, including drones, missiles, and air defence units. India’s advanced air defence systems successfully intercepted the majority of these threats.
J-10C Fighter Jets Used in Combat
Pakistan’s Foreign Minister Ishaq Dar confirmed that Chinese-made J-10C fighter jets were deployed during the conflict. These jets are manufactured by AVIC Chengdu Aircraft, a key unit under China’s defence industry.
Stock Market Reaction: Defence Shares Plunge
Following the ceasefire, Chinese defence stocks took a significant hit:
- The Hang Seng China A Aerospace & Defence Index dropped by 3%.
- AVIC Chengdu Aircraft shares fell by 8.6%.
- Zhuzhou Hongda declined by 6.3%.
The market responded to concerns over the visibility of Chinese weapons in the conflict and geopolitical fallout affecting regional arms deals.
About AVIC: China’s Defence Giant
The Aviation Industry Corporation of China (AVIC) is a state-owned aerospace and defence conglomerate responsible for the design and manufacture of China’s military aircraft and airborne systems. It plays a crucial role in China’s global defence exports.
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