- Tensions between India and Pakistan are rising, with Chinese defense stocks surging after Pakistan’s apparent use of China-made weapons to down Indian jets.
- Pakistan’s Foreign Minister Ishaq Dar claimed on Wednesday that Pakistan deployed Chinese-made J-10C fighter jets in a clash with India’s air force, according to local state media.
A J-10C fighter jet of the Chinese air force’s Ba Yi’s aerobatics team conducting adaptive training.
Vcg | Visual China Group | Getty Images
Tensions between India and Pakistan are rising, and Chinese defense stocks are surging after Pakistan’s apparent use of China-made weapons to down Indian jets.
Pakistan’s Foreign Minister Ishaq Dar claimed on Wednesday that Pakistan deployed Chinese-made J-10C fighter jets in a clash with India’s air force, according to local state media.
AVIC, through its subsidiary AVIC Chengdu Aircraft, manufactures the J-10C fighter jets reportedly used by Pakistan in the recent conflict. Another subsidiary, AVIC Aerospace, which produces military aircraft and helicopters, saw its Hong Kong-listed shares rising over 6%.
And Shenzhen-listed stocks of AVIC Chengdu Aircraft surged as much as over 16%. It last traded 8.31% higher at 11.40 a.m. local time. On Wednesday, its stocks rose 17.05%, marking the most significant gain since last October.
Shares of China State Shipbuilding Corporation, which builds military and civilian vessels, inched up 0.4%.
“Pakistan is the largest buyer of Chinese arms, including fighter jets, air defense systems, naval vessels, and UAVs,” said Yang Zi, associate research fellow at the S. Rajaratnam School of International Studies.
