Chinese Defense Stocks Drop After PM Modi's Speech
On Wednesday, Chinese defense stocks went down sharply after the India-Pakistan ceasefire made people less worried about a possible war. The Hang Seng China A Aerospace & Defence Index dropped by 1.3%, marking the second day of losses.
Many big companies in the Chinese defense sector saw their stock prices fall by 1% to 4%. Some of these companies include:
China Aerospace Times Electronics
Bright Laser Technologies
AVIC Aircraft
Only a few stocks went up, but most lost value. The index had already fallen by 2.9% the day before.
Avic Chengdu Aircraft Falls the Most
Shares of Avic Chengdu Aircraft, which makes J-10 fighter jets, fell by more than 9% in just two days. This company is linked to Pakistan's air force, and this caused more worries in the market.
India's Strong Defense Pushes Market Down
The fall in Chinese defense stocks happened after India's Prime Minister Narendra Modi spoke about India's successful defense. Modi said India's Akash missile and electronic systems worked well against weapons made in China that were used by Pakistan. This changed the market mood.
Chinese Defense Market Faces Uncertainty
The Hang Seng China A Aerospace & Defence Index is stuck between 4,000 and 4,500 points. Anshul Jain, a market expert, said the selling pressure may continue in China's defense stocks.
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