Shares of J-17 jet manufacturer soar after Pakistan downs Indian Rafale jets

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.