New Delhi, May 21 -- Chinese defence stocks traded lower on Wednesday, with several counters falling over 2%, as geopolitical tensions between India and Pakistan showed signs of easing. The Hang Seng China A Aerospace & Defence Index declined for the second consecutive session, slipping nearly 1%. The index has closed lower in six of the past seven sessions, recording a cumulative decline of 5.55% over this period.

Key constituents of the index-including Aerospace CH UAV Co, Inner Mongolia First Machinery Group, Beijing Cisri Gaona Materials Technology, China Aerospace, and AVIC Aviation High Technology-registered losses ranging from 0.5% to 2.5%.

Meanwhile, shares of AVIC Chengdu Aircraft rose over 1% on Wednesday. The company manufact...