Shares of Chinese defense manufacturer Avic Chengdu Aircraft, best known as the producer of J-10 fighter jets, have taken a significant hit—falling more than 9.4% over two days. This sharp decline comes in the wake of a forceful statement by Indian Prime Minister Narendra Modi, who hailed the success of Operation Sindoor, India’s recent anti-terror campaign.
As of 9:30 AM IST on May 14, Avic Chengdu Aircraft’s stock was trading at 90.65 yuan, down from Tuesday’s close of 88.74 yuan, which marked a 7% fall on that day alone. The broader selloff among Chinese defense stocks occurred amid strong gains in Indian defense shares.
The slide follows remarks from PM Modi delivered after Operation Sindoor, in which he asserted that India will not tolerate nuclear blackmail from Pakistan and emphasized that “terror and talks, terror and trade cannot go together.”
PM Modi praised India’s air defense capabilities, stating:
“The world saw how Pakistan’s drones and missiles fell like straws in front of India. India’s strong air defense system destroyed them in the sky itself.”
He declared Operation Sindoor as a shift in India’s strategic approach to terrorism:
“It is our new normal—a firm and just stance against terrorism. We have only paused our operations. Their future will depend on Pakistan’s conduct.”
Interestingly, despite the current downturn, Avic Chengdu Aircraft’s stock had rallied over 60% since the night of May 6, when Operation Sindoor began, largely due to Pakistan’s Deputy Prime Minister Ishaq Dar confirming the use of J-10 fighter jets during the conflict
