Chengdu Aircraft Corporation (CAC), the Chinese aerospace firm behind the J-10 fighter jet, has seen a significant uptick in its stock value following reports of a Rafale jet being downed during recent India–Pakistan air engagements.
According to data from the Shenzhen Stock Exchange, CAC’s shares are being traded at CNY 95.86 on May 12, 2025, marking a 20% increase in value in the day’s trade and more than 60% from the previous week’s close. This surge reflects heightened investor confidence in CAC’s defence capabilities amid escalating regional tensions.
Conversely, Dassault Aviation, the French manufacturer of the Rafale jet, experienced a decline in its stock performance. On May 9, 2025, Dassault’s shares closed at EUR 314.6, down from EUR 325.8 on May 5, representing a decrease of approximately 3.44%. This dip follows reports of the Indian Air Force acknowledging the loss of assets, including Rafale jets, during air combat operations.
The recent air engagements between India and Pakistan, which began on May 6, have intensified scrutiny on military hardware performance. Reports indicate that the Indian Air Force suffered the loss of multiple aircraft, including a Rafale jet, during these confrontations. The acknowledgment of these losses by Indian defence officials has had a tangible impact on the stock performances of the companies involved.
As the situation develops, investors and defence analysts alike will be closely monitoring the implications of these events on the aerospace and defence sectors.
