Chinese Weapons Manufacturer Stocks Plunge After Poor Performance in India-Pakistan Conflict

Chinese defense stocks have tumbled following widespread reports of poor performance by Chinese-made weapons during the recent India-Pakistan skirmish.

As reported by The Economic Times, IDRW, and Sentinel Assam, major Chinese arms manufacturers saw their stock prices fall sharply as confidence in their products wavered.

AVIC Chengdu Aircraft Co., which manufactures the J-10C fighter jet, saw its stock drop by up to 9.3%, according to IDRW.org.

The J-10C jets were reportedly engaged by Indian forces and failed to deliver the expected battlefield impact.

Meanwhile, The Economic Times reports that Zhuzhou Hongda Electronics Corp Ltd, which produces the PL-15 air-to-air missile, lost over 6.4% in market value.

The PL-15 was easily intercepted by Indian air defenses, with missile debris recovered inside Indian territory.

Yhe broader Hang Seng China A Aerospace & Defence Index also declined by nearly 3%, reflecting investor unease with the performance of Chinese defense exports.

Analysts say this sell-off is not just about geopolitical cooling, but about doubts surrounding the reliability of Chinese weapons in real-world conditions.

According to Sentinel Assam, the failures of the PL-15 and J-10C have raised red flags for potential buyers, many of whom are now reconsidering procurement plans.

Defense analysts have stressed that the fallout could be long-lasting.

“The poor showing of these systems in combat conditions could damage China's ambitions to be a dominant player in the global arms market,” one industry source told The Economic Times.

With battlefield performance now under global scrutiny, Chinese arms manufacturers are facing a major credibility crisis—one that could reshape international defense dynamics for years to come.