Following the recent escalation in tensions between India and Pakistan, shares of Chinese defense manufacturing companies experienced a notable surge. On Wednesday, the index tracking Chinese defense firms rose by 1.6%, reaching a two-week high. Notably, Avic Chengdu Aircraft Company, the producer of the J-10C fighter jet, saw its stock achieve its most significant gain since October 14.
This uptick is attributed to Pakistan’s deployment of Chinese-made J-10C jets in its military response, during which it claimed to have downed five Indian aircraft, including a French Rafale jet. Deputy Prime Minister Ishaq Dar confirmed the use of these jets, highlighting Pakistan’s increasing reliance on Chinese defense equipment. Analysts suggest that the combat performance of these platforms enhances their appeal in the global arms market, as real-world engagement provides valuable validation of their capabilities.