Avic Chengdu Aircraft Share Price Drops After India-Pakistan Conflict: What It Means for China and Pakistan

Jatinder Singh, Jadetimes Staff

Jatinder Singh is a Jadetimes news reporter covering tourism and political news.

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Image Source: orfonline.org

In the aftermath of heightened tensions between India and Pakistan, Chinese defense giant Avic Chengdu Aircraft Co. Ltd.—maker of the JF-17 and J-10C fighter jets used by Pakistan—has seen its share price plunge by over 12% in just a few days.

This sharp fall came as a reaction to Pakistan’s claims of using Chinese jets in retaliatory strikes against Indian targets, which were promptly countered by India. Prime Minister Narendra Modi's direct visit to the Adampur airbase, alleged to be hit by Pakistani missiles, was a powerful rebuttal to these claims and further eroded investor confidence in the effectiveness of Chinese military exports.

Impact on Pakistan

Pakistan relies heavily on Chinese military equipment, especially aircraft like the JF-17 Thunder.

The perceived underperformance and international skepticism surrounding these jets may force Islamabad to reassess its defense strategies.

The drop in confidence may also make future military collaborations more complex for Pakistan.

Impact on China

China has been pushing to become a leading global arms exporter, and the India-Pakistan conflict served as a high-stakes demonstration of its military technology.

The stock decline of Avic Chengdu raises concerns about the reliability and battlefield performance of its products.

Negative press and market reactions could damage China’s arms export credibility, especially among developing nations looking for cost-effective alternatives to Western systems.

The market reaction to the India-Pakistan clash reveals a deeper geopolitical and economic fallout. As India asserts itself diplomatically and militarily, the ripple effects are being felt in Beijing and Islamabad—both in terms of defense partnerships and economic confidence.