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Pakistan’s J-35 Jet Purchase Buzz Boosts Chinese Fighter Jet Maker’s Stock Value

Pakistan’s move to acquire J-35 jets sparks surge in Chinese defence stocks, signalling Beijing’s first stealth jet export.

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Pakistan’s J-35 Jet Purchase Buzz Boosts Chinese Fighter Jet Maker’s Stock Value

Chinese defence stocks experienced a sharp rise on Monday (June 9) after Pakistan indicated plans to purchase 40 J-35 fifth-generation stealth fighter jets from China. The move could lead to the first international sale of the advanced combat aircraft, boosting China’s global defence export ambitions.

AVIC Shenyang Aircraft Company, which manufactures the J-35, hit its daily trading limit of 10% on the Shanghai Stock Exchange. The surge continued a three-day rally for the firm. Other major defence firms also saw gains—Aerospace Nanhu Electronic Information Technology Co. jumped as much as 15%, according to Bloomberg.

This isn’t the first time China’s defence stocks have rallied amid India-Pakistan tensions. Previous escalations in South Asia have consistently triggered investor interest in Chinese military producers.

Pakistan eyes Chinese military systems amid regional tensions

On June 6, Pakistan’s government posted on social media that it intends to acquire not only 40 J-35 fighters but also KJ-500 airborne early warning and control aircraft and HQ-19 ballistic missile defence systems.

The J-35, developed by Shenyang Aircraft Corporation, features stealth technology and was publicly displayed for the first time at the 2024 Zhuhai Airshow. If the deal is finalised, it would be the first confirmed foreign sale of the fifth-gen fighter.

Escalating India-Pakistan conflict fuels arms race

The potential deal comes amid ongoing military tensions between India and Pakistan. A May 31 interview with India’s Chief of Defence Staff General Anil Chauhan confirmed the loss of Indian fighter jets during recent border clashes, though he withheld specifics.

In contrast, last month Pakistan claimed its Chinese-built J-10C fighters had shot down six Indian aircraft, including French-made Rafale jets. India dismissed these claims and insisted it had retaliated effectively with precision strikes into Pakistani territory.

Growing interest in Chinese defence hardware

Beyond South Asia, China’s military exports are gaining traction. Indonesia is reportedly considering purchasing J-10 fighters, moving away from its traditional reliance on Western and Russian suppliers.

Despite facing internal corruption scandals, China’s defence sector has continued to develop rapidly. In December, Beijing launched next-gen amphibious assault ships, now believed to be the largest of their kind. Additionally, a viral video from last year showing a supposed sixth-gen Chinese fighter jet test further fueled investor confidence, triggering another stock rally.

Pakistan’s announcement regarding the J-35 deal not only marks a potential milestone in China’s arms exports but also reflects a shifting military alignment in the region. As tensions persist in South Asia, the appetite for advanced weaponry appears to be driving economic activity across Asia’s defence sector.

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