Shares of China’s Chengdu Aircraft Corporation (CAC) soared on Wednesday following reports that the Pakistan Air Force (PAF) had shot down several Indian military aircraft, including French-made Rafale jets.
CAC, which manufactures the J-10C and JF-17 fighter jets operated by the PAF, saw its stock price climb to CNY 71.08 on the Shenzhen Stock Exchange, up 18% from the previous close. The stock was last trading at CNY 68.88, still up 16.29%.
Pakistan’s Defence Minister confirmed the PAF had successfully shot down five Indian fighter jets in an overnight engagement. According to senior Pakistani defense officials, a total of six Indian aircraft were destroyed — three Rafale jets, a MiG-29, a Su-30, and a Heron drone.
The Rafale, a cornerstone of India’s aerial defense strategy, has been central to its recent efforts to modernize its air force. The reported losses have sparked renewed debate over the aircraft’s performance in combat scenarios.
No PAF aircraft were damaged in the exchange, and all units returned safely to base, according to a military spokesperson.
Investor confidence in Chinese defense exports appeared to grow following the incident. An index tracking Chinese defense firms climbed 1.6% to a two-week high, with CAC among the top performers, marking its largest gain since October 14.
Meanwhile, shares of Dassault Aviation — manufacturer of the Rafale — dropped 1.64% on the Paris Stock Exchange, falling EUR 5.40 to EUR 324. Analysts suggested further downside could follow as questions mount over the Rafale’s battlefield effectiveness.
