New Delhi, Nov. 27 -- Despite simmering tensions between neighbouring countries Pakistan and Afghanistan, shares of Chinese defence stock AVIC Chengdu have been in a downtrend - a reflection of investor fatigue.

AVIC Chengdu's stock is seeing a pullback following a sharp run-up in the earlier part of 2025 as the J-10 was used in a recent conflict between Pakistan - China's close defence partner - and India. In the month of May, amid the India-Pakistan conflict, J-10 fighter jet maker's stock had gained as much as 31% followed by a 15% rise in June and a 20% rally in August to its peak of 108.93 yuan.

However, the stock is currently trading lower for the third month in a row, down 5.5%. In the previous two months, it has lost almost 18% ...