AVIC Chengdu to Beijing Navigation Control - Chinese defence stocks volatile amid fading India-Pakistan tensions
Chinese defence stocks witnessed heightened activity on Tuesday, tracking gains in the broader China stock market. Shares of AVIC Chengdu Aircraft, the manufacturer of the J-10 fighter jets, were particularly in focus amid the recent military conflict between India and Pakistan.
The Hang Seng China A Aerospace & Defence Index surged 13% over just six trading sessions — from April 13 to May 12 — coinciding with the onset of the India-Pakistan conflict in early May. The rally was driven by expectations of increased Chinese arms exports to Pakistan as tensions escalated.
However, the rally lost steam following the announcement of a ceasefire agreement between the two nations, which helped ease fears of a prolonged conflict. Subsequently, the index declined nearly 8% over the next 12 sessions until May 28.
In a sign of renewed buying interest, the index of the Chinese defence stocks has since gained over 4% in the last three trading sessions. Hang Seng China A Aerospace & Defence Index is still down 5% from May 12 high.
Several constituent stocks of the index, including Tellhow Sci-Tech, Beijing Navigation Control, Jiangsu Maixinlin Aviation Science and Technology, Tianqin Equipment, and Beijing Hengyu Datacom Aviation Equipment Co, have declined between 5% and 10% over the past month.
AVIC Chengdu Aircraft, the manufacturer of the J-10 fighter jets used by Pakistan, remained in the spotlight during the peak of the India-Pakistan conflict. However, the bullish momentum in the stock has since faded. AVIC Chengdu share price has plummeted over 20% from their May peak, falling from a high of 95.86 yuan on May 12 to a low of 76.70 yuan in just 15 sessions.
The decline in AVIC Chengdu Aircraft share price was exacerbated after Indian Prime Minister Narendra Modi publicly questioned Pakistan's claims that Chinese-made fighter jets were responsible for the destruction of the Indian Air Force's Adampur airbase.
Investor sentiment on Chinese Defence stocks also turned cautious following the successful completion of India's Operation Sindoor, which showcased India's military capabilities. Additionally, the ceasefire agreement between India and Pakistan has reduced the urgency and potential for immediate defence procurement, further dampening interest in Chinese defence counters.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
18 minutes ago
- Economic Times
Centre nudges Indian carriers to invest in crisis-hit Air Mauritius amid strategic push in Indian Ocean
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The Centre has asked carriers to consider a strategic investment in Air Mauritius , the financially strapped national carrier of the African island nation, people aware of the development said. The nudge from the government comes as that airline battles a financial crisis , with a negative equity of $237 million (Rs 2,035 crore).A government official said the move came after the ministry of external affairs got a request from the Mauritian government for a potential strategic investment. It also asked for an increase in flights by Indian carriers to its capital, Port Louis, the person said.'To cut losses, Air Mauritius has restructured its network, as part of which it significantly cut flights to India,' the official said. 'Indian carriers have been asked to launch more flights to cover the shortfall. The airline is also seeking to raise funding by selling equity, so Indian airlines are being requested to consider that, (but) only if it suits their business interest.'Airport Holdings (AHL), controlled by the Government of Mauritius, has a 99% stake in the airline. AHL recently converted Rs 1,500 crore of debt into equity as part of the carrier's financial restructuring. Earlier this year, Mauritius Prime Minister Navin Ramgoolam said the carrier was technically insolvent, casting doubt over its airline, which earlier operated two weekly flights between Port Louis and Delhi, had considered axing them but then decided to reduce it to one a week, while increasing fares significantly. Spokespersons of the ministry of civil aviation and Air Mauritius didn't respond to queries on the airline executives said they are unlikely to be interested in investing in a market that's not a significant source of passengers for them. Besides, they are in the midst of executing their own ambitious expansion Minister Narendra Modi was chief guest at Mauritius' National Day celebrations earlier this year. During his visit, Ramgoolam asked Indian investors to explore opportunities in the island nation, underlining that their participation is 'vital' for its economic growth. Last year, India built an airstrip and a jetty at Agaléga island in that country. Air India held about 8% of Air Mauritius before the former was privatised in said Mauritius is of strategic interest to India due to its location on the maritime routes of the Western Indian Ocean Region (WIOR). Geopolitical competition over the region has intensified. China has a military base in Djibouti and extended its engagement with and presence in Mauritius and other island nations, according to Samir Bhattacharya, associate fellow at Observer Research Foundation.'Given its diplomatic, cultural and commercial connections in the region, India considers the WIOR a part of its extended neighbourhood,' he wrote recently. 'Despite geographically being part of Africa, New Delhi categorises both Mauritius and the Seychelles under the Indian Ocean Region division, alongside more proximate states such as Sri Lanka and the is therefore keen to safeguard its influence against Beijing in this region.' While Mauritius is geographically well positioned to attract transit traffic between Africa and Asia, a fast-growing market, competition has surged. That's made it difficult for Air Mauritius to succeed at developing a new east-west hub while maintaining Air India absorbed Vistara last November, the airline has increased flights, managing to win a portion of the traffic from Air Mauritius while IndiGo continues to capture a significant share of that market. Additionally, Middle East carriers such as Emirates have a strong presence on the route.
NDTV
41 minutes ago
- NDTV
"Operation Sindoor Was Brilliantly Chosen Name": Shashi Tharoor In US
Washington: Congress MP Shashi Tharoor, who is leading the all-party delegation to the US, said Operation Sindoor was a "brilliantly chosen name" and explained its significance. The delegation is visiting the global capitals as part of the government's big diplomatic outreach to highlight its stand on terrorism following operation Sindoor. During an interaction session at the National Press Club in the US on Wednesday (local time), Mr Tharoor noted that the colour of sindoor is not very different from the colour of blood and even used the Hindi expression "khoon ka badla khoon" and said that here it was 'sindoor ka badla khoon', meaning blood in response to what the terrorists have done to the sindoor. When asked why India chose the name 'Operation Sindoor' for its counter-terrorism action, he responded, "Operation Sindoor, actually, I thought was a brilliantly chosen name. Sindoor, in case some Americans obviously don't know about this, is a vermilion mark that is applied to the centre of the forehead of married women in the Hindu tradition. It's widely practised. Some non-Hindus do it too, but more for decorative purposes, but strictly speaking, the Sindoor is applied at the time of the marriage ceremony and is worn every day thereafter by married women. So, we were very conscious of these brutal terrorists who, by the way, shot men in front of their wives and children but spared the women and when one wife screamed out, Kill me too, she was told, no, you go back and tell them what we've done." "That was why the women were spared horrendous, horrendous act. That sindoor had essentially been wiped off the foreheads of 26 Indian women, 26 I was gonna say Hindu women, but one of them actually was a Christian, but the sindoor had been wiped off the rest by these terrorist actions, and so we wanted first of all, to avenge that act of wiping off the sindoor. But, secondly, it's no accident that the colour of the sindoor is bright vermilion red, which is not far from the colour of blood, and in many ways there is a Hindi expression that 'khoon ka badla khoon'; here it was 'sindoor ka badla khoon' hoga, that is, blood in response to what they have done to the sindoor," he added. Shashi Tharoor said that none of the side involved in the conflict talks about the losses they faced, as the operational details are closely held with the senior military people. He talked about how Indian forces effectively struck 11 airfields of the Pakistani military, and Pakistan has publicly admitted that Indian strikes were so wide-ranging and effective that they struck from as far as Hyderabad in South Pakistan to Peshawar in the northwest. When asked how many aircraft India lost in the conflict with Pakistan, Shashi Tharoor said, "We're not military folks, and our military are the only ones who really keep track of all of these things. But, I think the important message that came out was whatever may or may not have happened in the course of a conflict, neither side, by the way, talks about losses very much, and that's partially because you know very well that operational details are very closely held with the senior military people. But, I can tell you one thing, whatever may or may not have happened, look what happened on the last, what turned out to be the last night of the conflict, when India not only effectively struck 11 airfields of the Pakistani military, but there are commercially available, publicly available satellite pictures showing the extensive damage done. "There's been craters on the runway, there have been operational command centers that have been busted by these Indian bombs, and just yesterday the Pakistanis publicly admitted that Indian strikes were so wide-ranging and effective they struck from as far as Hyderabad in South Pakistan to Peshawar in the northwest. So it looks very clear that whatever damage the Pakistanis believe they may have inflicted on India, it wasn't sufficient to prevent India from inflicting such extensive damage on Pakistan that they decided to request us to stop, which we very happy to do," he added. The delegation led by Mr Tharoor arrived in the US on Wednesday. The delegation includes Shambhavi Chaudhary (Lok Janshakti Party), Sarfaraz Ahmed (Jharkhand Mukti Morcha), G M Harish Balayogi (Telugu Desam Party), Shashank Mani Tripathi, Tejaswi Surya, Bhubaneswar Kalita (all from BJP), Mallikarjun Devda (Shiv Sena), former Indian Ambassador to the US Taranjit Singh Sandhu, and Shiv Sena MP Milind Deora. Earlier, the all-party met Bipartisan co-chairs Ro Khanna and Rich McCormick, as well as vice co-chairs Andy Barr and Marc Veasey, on Wednesday. During the meeting, the parliamentary delegation briefed the Caucus members on the cross-border terrorism faced by India and India's strong and resolute stance against terrorism. In a post on X, the Indian Embassy in the US stated, "Bipartisan co-chairs @RoKhanna & @RepMcCormick and vice co-chairs @RepAndyBarr & @RepVeasey of India Caucus in the House of Representatives met with the visiting Parliamentary delegation led by @ShashiTharoor today." "The parliamentary delegation briefed the Caucus members on the cross-border terrorism faced by India and India's strong and resolute stance in the fight against terror. The Congressmen expressed unequivocal and bipartisan condemnation for the terror attack in Pahalgam. They expressed support for India's right to respond to terrorism in the spirit of zero tolerance against terrorism. The Caucus members also hailed the strong strategic partnership between India and USA," it added. The delegation also held a meeting with the US House Foreign Affairs Committee leadership in Washington. DC. HFAC Chairman Brian Mast, Ranking Member of the committee, Gregory Meeks, South and Central Asia Subcommittee Chair Bill Huizenga, Ranking members - Sydney Kamlager-Dove and Ami Bera, Subcommittee on East Asia and the Pacific Chair, Young Kim. The Indian Embassy in the US stated, "The all-party Parliamentary delegation led by @ShashiTharoor held candid & fruitful exchange with @HouseForeign Affairs Committee (HFAC) leadership. Chair @RepBrianMast, Ranking Member @RepGregoryMeeks, South and Central Asia Subcommittee Chair @RepHuizenga, Ranking Member @RepKamlagerDove, Ranking Member @RepBera and East Asia and Pacific Subcommittee @RepYoungKim greeted the delegation." "The Parliamentary delegation briefed the committee members on the success of Operation Sindoor in defining a new normal in India's fight against cross-border terrorism. The Committee Leadership condemned the Pahalgam attack unequivocally. India and USA stand together in their unwavering resolve and fight against terrorism in all its forms," it added. The all-party delegation arrived in the US after concluding their visit to Brazil. The delegation aims to brief key stakeholders in the US on Operation Sindoor, India's diplomatic initiative launched to counter terrorism and disinformation following the recent terror attack in Jammu and Kashmir's Pahalgam. As many as 26 people were killed and several others were injured in a terrorist attack in Baisaran valley of Jammu and Kashmir's Pahalgam on April 22. Among the victims were 25 Indian nationals and one Nepali citizen. In response to the Pahalgam attack, the Indian Armed Forces launched Operation Sindoor on May 7. The Indian Armed Forces targeted terror infrastructure in Pakistan and Pakistan-occupied Jammu and Kashmir, resulting in the deaths of over 100 terrorists affiliated with groups such as Jaish-e-Mohammed, Lashkar-e-Taiba, and Hizbul Mujahideen. The Indian Armed Forces responded effectively to subsequent Pakistani aggression and pounded its airbases. India and Pakistan agreed for a cessation of hostilities on May 10.
Time of India
an hour ago
- Time of India
Centre nudges Indian carriers to invest in crisis-hit Air Mauritius amid strategic push in Indian Ocean
The Centre has asked carriers to consider a strategic investment in Air Mauritius , the financially strapped national carrier of the African island nation, people aware of the development said. The nudge from the government comes as that airline battles a financial crisis , with a negative equity of $237 million (Rs 2,035 crore). A government official said the move came after the ministry of external affairs got a request from the Mauritian government for a potential strategic investment. It also asked for an increase in flights by Indian carriers to its capital, Port Louis, the person said. 'To cut losses, Air Mauritius has restructured its network, as part of which it significantly cut flights to India,' the official said. 'Indian carriers have been asked to launch more flights to cover the shortfall. The airline is also seeking to raise funding by selling equity, so Indian airlines are being requested to consider that, (but) only if it suits their business interest.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like เทรดทองCFDsกับโบรกเกอร์ที่เชื่อถือได้| เปิดบัญชีวันนี้ IC Markets สมัคร Undo Airport Holdings (AHL), controlled by the Government of Mauritius, has a 99% stake in the airline. AHL recently converted Rs 1,500 crore of debt into equity as part of the carrier's financial restructuring. Earlier this year, Mauritius Prime Minister Navin Ramgoolam said the carrier was technically insolvent, casting doubt over its future. The airline, which earlier operated two weekly flights between Port Louis and Delhi, had considered axing them but then decided to reduce it to one a week, while increasing fares significantly. Spokespersons of the ministry of civil aviation and Air Mauritius didn't respond to queries on the topic. Live Events Indian airline executives said they are unlikely to be interested in investing in a market that's not a significant source of passengers for them. Besides, they are in the midst of executing their own ambitious expansion plans. WHY IT MATTERS Prime Minister Narendra Modi was chief guest at Mauritius' National Day celebrations earlier this year. During his visit, Ramgoolam asked Indian investors to explore opportunities in the island nation, underlining that their participation is 'vital' for its economic growth. Last year, India built an airstrip and a jetty at Agaléga island in that country. Air India held about 8% of Air Mauritius before the former was privatised in 2022. Experts said Mauritius is of strategic interest to India due to its location on the maritime routes of the Western Indian Ocean Region (WIOR). Geopolitical competition over the region has intensified. China has a military base in Djibouti and extended its engagement with and presence in Mauritius and other island nations, according to Samir Bhattacharya, associate fellow at Observer Research Foundation. 'Given its diplomatic, cultural and commercial connections in the region, India considers the WIOR a part of its extended neighbourhood,' he wrote recently. 'Despite geographically being part of Africa, New Delhi categorises both Mauritius and the Seychelles under the Indian Ocean Region division, alongside more proximate states such as Sri Lanka and the Maldives. India is therefore keen to safeguard its influence against Beijing in this region.' While Mauritius is geographically well positioned to attract transit traffic between Africa and Asia, a fast-growing market, competition has surged. That's made it difficult for Air Mauritius to succeed at developing a new east-west hub while maintaining profitability. Since Air India absorbed Vistara last November, the airline has increased flights, managing to win a portion of the traffic from Air Mauritius while IndiGo continues to capture a significant share of that market. Additionally, Middle East carriers such as Emirates have a strong presence on the route.
