Shaun
The Chinese defence company and maker of J-10 fighter jets — AVIC Chengdu Aircraft — has seen a sharp trend reversal, with the stock falling 18% in the last one month amid the easing India-Pakistan conflict.
Moreover, AVIC Chengdu stock has also faced a setback after India dismantled claims by Pakistan that Chinese-made jets had managed to destroy an army airbase in the country.
Why is AVIC Chengdu stock falling?
While the AVIC Chengdu share price skyrocketed during the four-day India-Pakistan military conflict, it declined as the tensions eased. From its peak of 95.86 yuan a month ago on May 12, the Chinese defence stock has tanked 18% to 78.68 yuan on Wednesday, June 11.
The Chinese defence stock has suffered losses after Prime Minister Narendra Modi poked holes in Pakistan’s claims that Chinese-made fighter jets were responsible for destroying the Indian Air Force’s Adampur airbase.
“Pakistan claimed it damaged our S-400 and BrahMos missile bases with JF-17 jets, which is completely false,” said Colonel Sofiya Qureshi. “It also spread misinformation about damage to Indian airfields in Sirsa, Jammu, Pathankot, Bhatinda, Nalia, and Bhuj — all of which is untrue.”
Additionally, the fall in AVIC Chengdu and other Chinese defence stocks can also be attributed to the successful completion of India’s Operation Sindoor, which highlighted India’s military prowess.
Despite the fall, AVIC Chengdu Aircraft’s stock gained 30% in May.
AVIC Chengdu Aircraft stock: Tech view
Avic Chengdu is consolidating in a broad range of 86–75 with no signs of institutional accumulation, suggesting a lack of conviction for a breakout, said Anshul Jain, Head of Research at Lakshmishree Investments.
“The structure indicates more time is needed, and we expect this sideways movement to persist for 8–10 weeks. Only a decisive range breakout—above 86 or below 75—will confirm a directional move. Traders should wait for high-volume breakout confirmation before taking fresh positions,” he added.
