Operation Sindoor Impact: Chinese Defence Stocks Rally Up To 36% In 2 Days Amid India-Pak Tensions
Pakistan Defence stocks surged up to 36% after India launched 'Operation Sindoor'. Chinese defense stocks like Avic Chengdu Aircraft Co Ltd also rose significantly.
Pakistan Defence stocks rallied up to 36 per cent in the past 2 days since India launched attacks on terrorist infrastructure under ‘Operation Sindoor’ in Pakistan and Pakistan-occupied Kashmir.
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One such Chinese defence stock Avic Chengdu Aircraft Co Ltd hit 20% upper circuit on Thursday to CNY 83.20, up 43 per cent in the past five sessions with a major uptick since India launched attacks in Pakistan’s terrorist sites on May 07.
The reason behind the recent upsurge came as Pakistan used these Chinese made aircrafts in their armies. The Pakistan Air Force operates the J-10 Vigorous Dragon and the JF-17 Thunder, both manufactured by AVIC Chengdu Aircraft, a subsidiary of the state-owned AVIC in China. The Chinese defense company responsible for producing the J-17 and J-10C fighter jets has experienced a significant rise in its stock value.
India’s announcement on Wednesday of precision strikes on terror-linked targets inside Pakistan and in Pakistan-occupied Kashmir (PoK) led to a significant stock movement. The Ministry of Defence reported that nine terror launchpads were targeted in response to recent threats and provocations.
These strikes followed last month’s terrorist attack in Pahalgam, Jammu and Kashmir, which resulted in the loss of 26 lives.
Additionally, reports indicated that more than 60% of China’s arms exports between 2020 and 2024 were directed to Pakistan, underscoring Beijing’s role in arming India’s neighbor.
This situation also caused a surge in Chinese defense-related stocks like Chengdu Tianjian Technology, Sun-Create Electronics, and Chengdu ALD Aviation, which rallied nearly 10%, reflecting bullish sentiment on China’s expanding defense exports, much of which are destined for Pakistan.
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