The shares of Chinese company Avic Chengdu Aircraft – the maker of J-10 fighter jets – saw a heavy selloff on Tuesday, May 13, a day after Prime Minister Narendra Modi’s fiery address to the nation on India’s successful ‘Operation Sindoor’ against Pakistan-based terror camps and Pakistani military.
While Indian defence stocks rallied, shares of Avic Chengdu Aircraft faced a heavy selloff on Tuesday, Live Mint reported. Avic Chengdu Aircraft manufactures J-10 fighter jets, which Pakistan claimed to have used against India during its operation ‘Bunyan-un-Marsoos’.
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Avic Chengdu Aircraft share price crashed as much as 9.31% to 86.93 yuan in intraday trade on Tueday, on day Modi Modi a firm message from Adampur Air Base to Pakistan: Not only have you failed to harm any of India’s military installations but “you will be annihilated if terrorism continues from your soil”.
Railway minister Ashwini Vaishnaw also took a dig at Pakistan, which had claimed to have destroyed the Adampur air base during its attack on the night of May 9-10, in response to India’s Operation Sindoor.
As of 1.15 pm India time, China’s Avic Chengdu Aircraft stock was down 7.51% at 88.66 yuan.
Shares of CAC had surged by 20 per cent on May 12. This marked a significant rise in investor confidence for CAC, with its stock reaching Chinese Yuan 95.86, a 60% increase from the previous week.
The stock price of Chengdu Aircraft Industries once hit 88.88 yuan in mainland China’s stock market. It rose 50% in three days from the closing price of 59.23 yuan on May 6. Chengdu Aircraft Industries returned its gains on May 9 due to profit-taking sales, closing at 79.88 yuan. This is also up 35% from the May 6.
The rise in the Chengdu aircraft industry was attributed to the India-Pakistan conflict.
The J-10C of the Pakistani military is the latest improvement to the J-10. The J-10 is a single-engine lightweight fighter developed by China’s Chengdu Aircraft Industry Group, nicknamed the fierce dragon (Menglong).
After completing its initial flight in 1998, it was deployed to the Chinese People’s Liberation Army Air Force from 2003. J-10C was successfully electrified in 2018, and exports to Pakistan were made in 2022.
Shares of China State Shipbuilding Corporation, which builds military and civilian vessels, slipped over 4%. Military electronic component maker Zhuzhou Hongda Electronics Corp Ltd was down more than 6%, Business Today reported.
Meanwhile, shares of Dassault Aviation, the maker of the Rafale jets, which were reportedly used by India during ‘Operation Sindoor’, rebounded nearly 3% in Tuesday’s session on the Paris Stock Exchange.
Earlier, it was reported that the stock of Dassault Aviation had dropped sharply in the European stock market. Dassault Aviation hit a 7 per cent intraday drop on Monday, reaching EUR 292. Throughout the day, the stocks kept fluctuating from EUR 291 to EUR 295.
Live Mint reported that Dassault Aviation shares had surged following Operation Sindoor, a precision strike carried out by the Indian Air Force on May 7, targeting terrorist infrastructure located around 200 kilometres within Pakistani territory.
Some reports claimed that India used Rafale fighter jets armed with SCALP cruise missiles and HAMMER munitions, all while avoiding a violation of Pakistani airspace.