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.
