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In the geo-political tension, there has been a boom in defense stocks before.
On May 7, China’s defense stocks rose by 20% on 7 May after the air strike by India at 9 locations of terrorists in Pakistan and PoK.
Pakistan’s main defense supplier is China. If the Indo-Pak struggle increases, China’s defense supply is expected to rise. This is why defense shares have climbed.
An analyst said- China’s J-10C fighter jet can be seen in action for the first time due to conflict. If its performance is good, then some other countries can show interest in buying it.
J-10C fighter jet maker shares climbed 20%
- The stock of J-10C fighter jet manufacturer Evic Chengdu aircraft climbed 11.37 Chinese Yuan or 19.20% to 70.60 CNY.
- The shares of Guanglian Aviation Industry, a product -making company -making product -related product, climbed 1.00 Chinese yuan or 4.76% to 22.00 CNY.
- Aircraft and naval ship manufacturer Jiangshi Hongdu Aviation Industry’s stock rose 2.17 Chinese yuan or 6.35% to 36.29 CNY.
- Civil and military aircraft manufacturer AVIC Shenyang Aircraft’s stock rose 2.78 Chinese Yuan or 6.43% to 46.03 CNY.
- The stock of training jet and helicopter manufacturer Avichina Industry & Technology climbed 0.22 Hong Kong Dollars or 6.08% to reach 3.84 HKD.
Defense stocks have been seen in geo-political tension before
During the geopolitical upheaval, Chinese defense stocks have seen a boom earlier. For example, in 2017, the CSI Aerospace and Defense Index had climbed 3.4% after Taiwan’s rhetoric around the US-China tension. In 2018, when China announced to increase spending on defense, AVChina’s stock climbed 40%.
Shares of India’s defense companies also boom
Majgaon Dock Shipbuilders Limited 2.20%, Cochin Shipyard 1.66%, Hindustan Aeronautics Limited (HAL) 1.15%, India Dynamics 0.50%and India Electronics 0.69%.
Operation Sindoor-India avenged the Pahalgam attack
India launched an air strike at 9 terrorist bases in 7 cities of Pakistan under ‘Operation Sindoor’ on Wednesday night. More than 100 terrorists have been killed in this.
This counter -action of India has been taken 15 days after the Pahalgam attack and has been named ‘Operation Sindoor’. The name is dedicated to women whose husbands were murdered by terrorists on 22 April in Pahalgam.
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