Latest news with #HangSengChinaAAerospace&DefenceIndex
Mint
2 days ago
- Business
- Mint
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.
Mint
21-05-2025
- Business
- Mint
China Aerospace, Avic Aviation to Aerospace CH UAV: Chinese defence stocks extend fall; slip up to 2%
Chinese defence stocks traded lower on Wednesday, with several counters falling over 2%, as geopolitical tensions between India and Pakistan showed signs of easing. The Hang Seng China A Aerospace & Defence Index declined for the second consecutive session, slipping nearly 1%. The index has closed lower in six of the past seven sessions, recording a cumulative decline of 5.55% over this period. Key constituents of the index—including Aerospace CH UAV Co, Inner Mongolia First Machinery Group, Beijing Cisri Gaona Materials Technology, China Aerospace, and AVIC Aviation High Technology—registered losses ranging from 0.5% to 2.5%. Meanwhile, shares of AVIC Chengdu Aircraft rose over 1% on Wednesday. The company manufactures the J-10 fighter jets, which, according to Pakistan's Deputy Prime Minister Ishaq Dar, were recently deployed by the country's air force. Despite Wednesday's gains, the stock has declined 7.5% over the past five trading sessions. However, it remains up 39% over the past month.
Hans India
14-05-2025
- Business
- Hans India
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.
Mint
14-05-2025
- Business
- Mint
China Aerospace, AVIC Aircraft, other Chinese defence stocks' fall continues after PM Modi's speech
Chinese defence stocks witnessed a sharp decline on Wednesday, with several names falling as much as 4%, following the ceasefire agreement between India and Pakistan that eased concerns over a potential escalation in the conflict. The Hang Seng China A Aerospace & Defence Index dropped for the second consecutive session, losing 1.3%. Key constituents of the index, including China Aerospace Times Electronics Co. Ltd. (Long March Launch Vehicle Technology Co. Ltd), Bright Laser Technologies, North Industries Group Red Arrow Co., Xi'an Triangle Defense, China Spacesat, Beijing Bei, and AVIC Aircraft, recorded losses ranging between 1% and 4%. Only two of the 29 stocks in the index were trading in positive territory, with the remainder slipping into the red. The index had fallen 2.9% in the previous session on Tuesday. Meanwhile, Avic Chengdu Aircraft share price crashed more than 9% in two sessions. vic Chengdu Aircraft is the maker of J-10 fighter jets, which Pakistan Deputy Prime Minister Ishaq Dar said were used by its air force. The recent correction comes after an earlier rally in Chinese defence stocks, driven by expectations of increased arms exports to Pakistan. However, sentiment turned bearish amid easing geopolitical tensions and strong messaging from India. The market reacted to statements from Indian Prime Minister Narendra Modi, who addressed the nation regarding the successful completion of Operation Sindoor. The operation, launched in response to recent cross-border aggression, was hailed by Modi as a demonstration of India's robust defence capabilities. Over the past two days, both the Indian Army and the Prime Minister have underscored the effectiveness of indigenous defence systems, such as the Akash Surface-to-Air Missile (SAM) and electronic warfare systems, during the recent conflict. These systems reportedly performed successfully against defence equipment of Chinese origin used by Pakistan. 'The great success of Indigenous defence systems such Akash SAM and electronic warfare have shown the reliability and effectiveness and has further strengthened the demand outlook. The successful performance of Made in India defence systems against Chinese and other defence systems in Pakistan is also likely to magnify the demand for India-made defence equipment in the long run,' said Ashwini Shami, EVP & Sr. Portfolio Manager, OmniScience Capital. Reinforcing India's defence posture, PM Modi said, 'The world saw how Pakistan's drones and missiles fell like straws in front of India. India's strong air defence system destroyed them in the sky itself.' Modi described Operation Sindoor as a new paradigm in India's counter-terrorism strategy. 'It is the new normal. We have only kept in abeyance our operations against Pakistan and the future will depend on their behaviour,' Modi said in his address. 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.
Time of India
13-05-2025
- Business
- Time of India
India-Pakistan ceasefire: Chinese defence stocks drop up to 9% after rising during Operation Sindoor
Prior to the India-Pakistan ceasefire, Chinese defence stocks had seen substantial gains (AI image) Chinese defence stocks saw significant declines of up to 9% on Tuesday as investors retracted their positions following an unexpected ceasefire agreement that reduced tensions between India and Pakistan in South Asia. The Hang Seng China A Aerospace & Defence Index declined 2.9%, with major components AVIC Chengdu Aircraft and Zhuzhou Hongda Electronics Corp falling up to 9.2% and 6.5%, respectively, according to an ET report. This marked a notable shift from their recent gains, which were driven by anticipated increases in Chinese arms sales to Pakistan during a brief period of heightened tensions with India. Prior to the ceasefire, Chinese defence stocks had seen substantial gains, as investors anticipated Beijing's increased role in supplying arms to Pakistan during a potential extended conflict. On May 8, AVIC Chengdu Aircraft's Shenzhen-listed shares increased by up to 16%, while Hong Kong-listed AVIC Aerospace gained over 6%. Zhuzhou Hongda, producer of the PL-15 missiles allegedly used by Pakistani forces, also recorded significant increases. Also Read | India-Pakistan ceasefire: How India's punitive measures will continue to hit Pakistan's fragile economy - explained The market response followed the May 10 ceasefire announcement, after four days of intense cross-border attacks. India's "Operation Sindoor" targeted terror camps in Pakistan and Pakistan-occupied Kashmir, which led to counterattacks from Islamabad using drones. Pakistan's forces utilised Chinese-manufactured weapons, including drones and missiles, though India's air defence systems intercepted these. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 2025: Steel Suppliers From Mexico At Lowest Prices (Take A Look) Steel Suppliers | search ads Search Now Undo During the confrontation, Pakistan employed AVIC Chengdu Aircraft's J-10C fighter jets in their operations. Pakistan's Foreign Minister Ishaq Dar confirmed in Parliament, "Chinese-made J-10C fighter jets were used in the engagement with Indian fighter jets." Pakistan's military utilised PL-15 air-to-air missiles, manufactured by Zhuzhou Hongda. These armaments demonstrate the substantial military cooperation between China and Pakistan, as evidenced by arms trade statistics. India's military officials have presented photographic evidence demonstrating Pakistan's deployment of various weaponry. This included Chinese-manufactured PL-15 LR beyond visual range air-to-air missiles, along with Turkish-made Byker Yiha kamikaze drones and Asisguard Songar drones. The evidence also revealed their use of long-range rockets, loiter munitions and quadcopters. "Our integrated air defence (AD) systems stood like a wall and they (Pakistan) could not breach it. Whether it's a Turkish drone or anything else, it fails in front of the technology of India," director general of air operations Air Marshal A K Bharti said. Also Read | Operation Sindoor: Can Pakistan economically afford a protracted conflict with India as tensions escalate? Here's a reality check The Stockholm International Peace Research Institute (SIPRI) data reveals that China provided 81% of Pakistan's arms purchases from 2019 to 2023. Chinese arms exports to Pakistan reached $5.28 billion, constituting 63% of Pakistan's total defence acquisitions during this period. The swift decline in defence stock values indicates the market's previous incorporation of war-related premiums and their subsequent elimination. The initial increase reflected investors' anticipation of enhanced Chinese defence exports to Pakistan, considering their strategic partnership through the $60 billion China-Pakistan Economic Corridor (CPEC), a significant Belt and Road Initiative venture incorporating Chinese security provisions. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
