Chinese defence stocks surge as Pakistan signals major arms deal: report
Shares of Chinese defence firms soared on Monday after Pakistan announced plans to acquire a significant package of military equipment from Beijing, including one of China's most advanced stealth fighter jets, according to a Bloomberg report.
The government of Pakistan, in a social media post last Friday, said it would purchase 40 J-35 fifth-generation stealth fighter jets, KJ-500 airborne early warning and control (AEW&C) aircraft, and HQ-19 ballistic missile defence systems. China's Ministry of Defence has not officially commented on the announcement.
Bloomberg reported that AVIC Shenyang Aircraft Company, which manufactures the J-35 fighter, surged by its 10 percent daily limit in Shanghai, marking the third straight session of gains.
The rally extended to other defence companies, including Aerospace Nanhu Electronic Information Technology Co., which saw its shares rise as much as 15 percent.
The rise in Chinese defence stocks comes amid growing confidence in the effectiveness of Chinese military hardware following recent border clashes between Pakistan and India.
Last month, Pakistan claimed that its Chinese-supplied J-10C fighter jets were involved in successfully shooting down six Indian aircraft, including French-built Rafale jets.
While India dismissed those claims and downplayed the performance of foreign-supplied weaponry, it later confirmed that it had lost an unspecified number of fighter jets in the early May conflict.
Indian Chief of Defence Staff Anil Chauhan acknowledged the losses during a May 31 interview, without providing further details.
Military tensions between the two nuclear-armed neighbours flared up in early May, with both sides reportedly engaging in air, drone and missile strikes, along with cross-border artillery and small-arms fire, particularly along the Line of Control (LoC).
Previous reports had highlighted the effectiveness of Chinese-made platforms like the J-10C in active combat has significantly raised their credibility in the global arms market.
According to Bloomberg, this latest deal would mark China's first-ever export of the J-35 stealth fighter, first publicly unveiled at the 2024 Zhuhai Airshow.
The inclusion of KJ-500 AEW&C aircraft is expected to substantially improve Pakistan's radar coverage, given the system's advanced electronic warfare capabilities and operational agility.
The HQ-19 surface-to-air missile system would enhance Pakistan's air defence, particularly against ballistic missile threats.
Defence analysts say the procurement reflects Pakistan's ongoing efforts to upgrade its military preparedness amid sustained regional volatility.
At the same time, China continues to expand its influence as a global arms exporter by offering cutting-edge technology at relatively lower costs than its Western counterparts.
Despite facing periodic scrutiny over corruption in its military-industrial complex, China has accelerated the development of advanced defence platforms.
In December 2024, Beijing launched the world's largest next-generation amphibious assault ships, drawing international attention.
Business Recorder also recently reported that Indonesia, traditionally reliant on military equipment from the United States and Russia, is now considering China's offer to sell J-10 fighter jets, signalling a shift in regional defence procurement trends.
In a broader context, China's military-industrial progress appears to be part of a strategic vision to extend influence not just in the arms sector but also in dual-use domains.
The J-35 sale, if confirmed, could further boost investor confidence in China's ability to compete in the high-end defence export market dominated by the United States and European powers.
While formal details of the deal are still awaited, analysts say the announcement marks a milestone in Sino-Pakistan defence cooperation, with implications for both regional stability and global arms dynamics.
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