New Delhi, June 3 -- Chinese defence stocks witnessed heightened activity on Tuesday, tracking gains in the broader China stock market. Shares of AVIC Chengdu Aircraft, the manufacturer of the J-10 fighter jets, were particularly in focus amid the recent military conflict between India and Pakistan.

The Hang Seng China A Aerospace & Defence Index surged 13% over just six trading sessions - from April 13 to May 12 - coinciding with the onset of the India-Pakistan conflict in early May. The rally was driven by expectations of increased Chinese arms exports to Pakistan as tensions escalated.

However, the rally lost steam following the announcement of a ceasefire agreement between the two nations, which helped ease fears of a prolonged conf...