By Admin 
The increasing tension between India and Pakistan has brought China’s defense industry to new heights in the stock market. After the attack on terrorist bases in Pakistan and Pakistan Occupied Kashmir (POK) under ‘Operation Sindoor’ by India, there was a tremendous jump in the shares of Chinese defense companies.
Fighter jet making companies jumped
After the terrorist attack in Pahgam, when the confrontation between India and Pakistan, Avic Chengdu’s stocks suddenly gained momentum. The stock rose by 6.73 per cent on Friday and reached 88.80 yuan. Whereas on Thursday, the stock recorded a rise of 20.01 percent and 17.05 percent on Wednesday.
53 percent jump in 5 trading sessions
Avic Chengdu Aircraft Co. LTD, which makes JF-17 Thunder and J-10 Vigorous Dragon fighter jet for the Pakistani Air Force, has gained tremendous boom in its shares. On Thursday, the stock reached a upper circuit of 20 per cent and closed at CNY 83.20. Whereas only 5 trading sessions have registered a gain of 43 percent. The big reason behind this boom is that Pakistan is using these Chinese fighter jets against India.
India’s strike and China’s profit earnings
The Government of India on Wednesday announced that it had made accurate attacks on 9 terrorist launchpads, these hideouts were located in Pakistan and POK. The attack was the response to the terrorist attack in Pahalgam last month, in which 26 people lost their lives. After this action of India, the stir in the stock market in the Chinese defense industry intensified. Stocks of many defense companies in China rose rapidly, including Chengdu Tianjian Technology, Sun-CRECREATE Electronics and Chengdu Ald Aviation. The shares of these companies registered a rise of about 10 percent.
Hang Seng Defense Index also saw a boom
Hang Seng China Aerospace & Defense Index also saw a growth of 2.29 percent and it reached 4,289.13. All the defense companies involved in this index closed on the green mark. That is, the stocks of every company increased.
China-Pak defense connection
According to reports, between 2020 and 2024, 60 percent of China’s defense exports have gone to Pakistan. This means that Beijing has become the biggest weapon supplier of Islamabad and China’s weapon companies are making huge profits as soon as the tension from India increases.
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