ISLAMABAD/SHANGHAI: Shares of Chinese defence manufacturers surged on Monday following reports that Pakistan is planning a significant arms acquisition, including some of China’s most advanced military equipment. The news, originally highlighted by Bloomberg, sparked notable investor interest in China’s defense sector.
Among the biggest market movers was AVIC Shenyang Aircraft Company, the producer of the J-35 stealth fighter jet. The company’s stock rose by the maximum 10% daily limit on the Shanghai Stock Exchange, extending its winning streak for a third day. The J-35 is expected to be the centerpiece of the reported deal, which includes 40 fifth-generation jets.
Other defence-related stocks also surged, including Aerospace Nanhu Electronic Information Technology Co, which saw an intraday jump of up to 15%, indicating broad market confidence in China’s expanding defense exports.
According to a statement posted by Pakistan’s government on social media on Friday, the country intends to purchase not only J-35 stealth fighters but also KJ-500 airborne early warning and control aircraft and the HQ-19 ballistic missile defense system — a major step in modernizing its air defense and strategic deterrence capabilities. China’s Ministry of Defence has yet to comment publicly on the reported deal.
Investor optimism had already been building following claims made by Pakistan last month that Chinese-origin J-10C jets played a role in shooting down six Indian fighter aircraft, including French-made Rafales. India dismissed these assertions, stating that its forces carried out effective countermeasures and precision strikes in response.
If confirmed, the sale of the J-35 to Pakistan would represent China’s first international export of its fifth-generation stealth fighter, a milestone in Chinese defense manufacturing. The J-35 was unveiled to the public at the 2024 Zhuhai Airshow and is designed for low visibility, high maneuverability, and deep-strike capability, making it a significant enhancement to Pakistan’s aerial defense.
