Chinese defence stocks fall up to 8% on India-Pakistan ceasefire

By Sheetal Kumari | March 3, 2025

MC Desk | May 13, 2025

Chinese Defence Stocks Fall on India-Pakistan Ceasefire

(Image: Canva)

(Image: Canva)

(Image: Canva)

India and Pakistan on May 10 reached an understanding to halt all military actions across land, air and sea. As a result, Chinese defence stocks, heavily linked to arms sales to Pakistan, tumbled.

Selloff in Chinese Defence Stocks

(Image: Canva)

(Image: Canva)

(Image: Canva)

(Image: Canva)

The Hang Seng China A Aerospace & Defence Index was down nearly 3% in intraday trade on May 13.

Hang Seng China Aerospace & Defence Index Slips

(Image: Canva)

(Image: Canva)

(Image: Canva)

(Image: Canva)

Shares of AVIC Chengdu Aircraft Industry Group, the maker of J-10C fighter jets used by Pakistan during the engagement, fell as much as 8.6%.

AVIC Chengdu Drops Over 8%

(Image: Canva)

(Image: Canva)

(Image: Canva)

(Image: Canva)

Zhuzhou Hongda Electronics Corp Ltd, the manufacturer of PL-15 air-to-air missiles, declined 6.3% on the Hong Kong stock exchange.

Zhuzhou Hongda Down 6.3%

(Image: Canva)

(Image: Canva)

(Image: Canva)

(Image: Canva)

AVIC Aerospace, another subsidiary of state-owned Aviation Industry Corporation of China (AVIC), which builds military aircraft and helicopters, saw its shares slip over 2%.

 AVIC Aerospace Slides 2%

(Image: Canva)

(Image: Canva)

(Image: Canva)

(Image: Canva)

Between 2020 and 2024, China accounted for 81% of Pakistan’s total arms imports, according to SIPRI data analysed by Moneycontrol. The Netherlands and Turkey were distant second and third with 5.5% and 3.8% respectively.

China Top Defence Supplier to Pakistan

(Image: Canva)

(Image: Canva)

(Image: Canva)

(Image: Canva)

India’s Operation Sindoor targeted multiple terror camps in Pakistan-occupied Kashmir. Pakistan responded with drone attacks, many of which were intercepted by India’s modern air defence systems.  

India’s Operation Sindoor  

(Image: Canva)

(Image: Canva)

(Image: Canva)

(Image: Canva)

Moneycontrol advises users to check with certified experts before taking any investment decisions.

(Image: Canva)

Next: How Stock Markets Performed Today As India Avenges Pahalgam Attack
Thanks For Reading !
Find out More