Shares of Chinese jet manufacturer AVIC Chengdu Aircraft surged by 36% over two days amid rising tensions between India and Pakistan following Operation Sindoor. The stock rally was triggered by speculation that Pakistan had deployed Chinese-made J-10C and JF-17 fighter jets in response to Indian airstrikes on terror camps in Pakistan and Pakistan-occupied Kashmir.
On Wednesday, AVIC Chengdu’s shares jumped 17%, followed by a 16.37% rise on Thursday, pushing the price to 80.68 yuan—an all-time high for the defence contractor.
The spike was further driven by a flood of reports and rumours—many of which were later debunked—suggesting that Pakistani jets had downed Indian aircraft during the strikes. Investors, anticipating a potential rise in demand for Chinese-made fighter jets and weaponry, reacted swiftly. Pakistan remains China’s biggest defence customer, adding weight to the market speculation.
Amid all this, the Indian Embassy issued a warning to the Chinese state-run Global Times, urging it not to circulate unverified information regarding India's military actions.