Chinese defence stocks rallied on Monday, March 2 amid heightened tensions in the Middle East. Firms associated with China's defence industry witnessed a rise as investors reacted to escalating tensions due to US-Israel-Iran war.
Shares of Avic Shenyang Aircraft Company, recognised for producing defence equipment such as the J-35 stealth fighter, rose by more than 5.3%. The overall CSI defense index jumped by 3.4%, representing an annual increase of over 20%.
On March 2, 2026, the intraday performance data as per Trading View indicated that the Chinese defence sector exhibited widespread strength, primarily driven by heavy manufacturing and aerospace segments.
Xi'an Triangle Defense shares jumped 3.26%, with Avic Chengdu Aircraft shares were up nearly 2%. Data from Trading View also revealed a strong inclination among investors towards established military hardware manufacturers, as North Industries Red Arrow and Anhui GreatWall Military also recorded solid gains exceeding 2%, while China Spacesat completed the top five with a steady gain of 1.84%.
Chinese stock market today
China's stock benchmarks showed little change on Monday following the conflict in Iran, as gains in sectors like energy, defense, and gold were balanced out by sharp declines in airline and tourism stocks.
Sentiment on the mainland was buoyed by hopes that Beijing might intervene to stabilize markets ahead of an upcoming parliamentary meeting this week.
In contrast, Hong Kong's Hang Seng Index, which is more vulnerable to global market fluctuations, fell by more than 2%.
The United States and Israel conducted significant strikes on Iran over the weekend, resulting in the death of Supreme Leader Ayatollah Ali Khamenei, which has heightened geopolitical tensions and increased global economic uncertainty.
The blue-chip CSI300 Index and Shanghai Composite Index in China fluctuated between slight gains and losses during early trading.
(With inputs from agencies)
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
