New Delhi, March 19 -- Despite a raging war in the Middle East, involving the US and Israel on one side and Iran on the other, shares of Chinese defence companies are trading with sharp cuts.

Iran and China share deep strategic ties involving oil and defence; however, multiple media reports suggest that the Chinese defence systems failed to prove effective against the strikes by the US and Israel on Iran, dampening investor sentiment around the Chinese defence stocks.

Since the start of the US-Iran war, HS China A Aerospace & Defence index has declined almost 12% in March, with most of its index constituents in the red. Some of the well-known Chinese defence stocks like AVIC Chengdu and XiAn Triangle Defense are down up to 18%. In the l...