Share prices of China's Chengdu Aircraft Corporation (CAC) surged by more than 17% on Wednesday following reports that the Pakistan Air Force (PAF) had shot down multiple Indian combat aircraft, including French-made Rafale jets.
CAC, which manufactures the J-10 and JF-17 fighter jets used by the PAF, saw its stock price at the Shenzhen Stock Exchange rise to CNY 71.08, up 18% from the previous close.
At the time of reporting, the stock remained in the green and was trading at at CNY 68.88, a 16.29% increase.
The rally followed confirmation by Pakistan’s Defence Minister that the country’s air force had shot down five Indian fighter jets overnight.
According to senior Pakistani defence officials, a total of six Indian aircraft were destroyed — three Rafale jets, a MiG-29, an SU-30, and a Heron surveillance drone.
All Indian aircraft were reportedly attempting to target Pakistani territory using stand-off munitions.
“No PAF aircraft were damaged. All units returned safely to base,” a Pakistani military spokesperson said.
Meanwhile, shares of France’s Dassault Aviation — the maker of the Rafale fighter jet — dropped at the Paris Stock Exchange.
The company’s stock had declined by EUR 5.40, or 1.64%, to EUR 324.
Overall, defence analysts noted Dassault's stock could fall by a further 5% amid scrutiny over the Rafale’s battlefield performance.
The sharp contrast in investor sentiment could be a sign of global market confidence in the capabilities of PAF and performance of the JF-17 and J-10C jets, developed in cooperation with China.
The developments also renewed debate about the combat readiness and reliability of India’s Rafale fleet.
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