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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
39 minutes ago
- Business Recorder
Bilawal rejects India's unsubstantiated, politically- motivated allegations
LONDON: The head of Pakistan's parliamentary delegation, visiting United Kingdom, Bilawal Bhutto Zardari, has again categorically rejected the baseless Indian allegations levelled against Pakistan without credible investigation or verifiable evidence in backdrop of Pahalgam incident. He was briefing the All Party Parliamentary Group on Pakistan during a meeting hosted by the Pakistan Chair and Member of British parliament Yasmin Qureshi at Westminster Palace in London. The meeting was also attended by the cross-party British parliamentarians. Bilawal Bhutto Zardari highlighted that Indian attack on civilian population, violation of Pakistan's sovereignty and unilateral holding in abeyance of the Indus Water Treaty - in blatant violation of the international law and modern rules-based system - could have dangerous consequence for the regional and international peace and security. The attention was drawn to what it described as India's 'unsubstantiated and politically motivated allegations' following the Pahalgam incident. Bhutto said India had 'levelled serious accusations against Pakistan without any credible investigation or verifiable evidence,' adding that Islamabad 'categorically rejected these baseless claims'. 'These actions by India are not just irresponsible, but pose serious risks to peace and stability in South Asia and beyond,' he said. The delegation is a part of Pakistan ongoing diplomatic outreach to the international community on the deteriorating region security situation due to Indian aggression against Pakistan after the Pahalgam incident. Bilawal Bhutto Zardari briefed the parliamentarians of the repercussions of the Indian aggression and violations of the Pakistan's sovereignty after the Pahalgam incident, without justification on the basis of investigation or inquiry. In his remarks, Minister for Climate Change and Environmental Coordina-tion, Musadik Malik, apprised the parliamentarians of the environmental hazards of holding the Indus Water Treaty in abeyance by India, threats to food security and survival of 240 million population of Pakistan, primarily an agrarian economy. The delegation emphasized that Pakistan response to Indian aggression was calibrated, responsible and fully consistent with international law, including the right to self-defence under Article-51 of the United Nations Charter. The delegation underscored Pakistan commitment to restraint, revival of the Indus water Treaty and initiation of a composite dialogue between the two countries on all outstanding issues, particularly the Jammu and Kashmir dispute. The APPG meeting chair Ms Qureshi reaffirmed the importance of sustained parliamentary dialogue on human rights and regional peace, and lauded the Pakistani delegation's efforts to keep UK lawmakers informed on developments in South Asia. The briefing comes at a time of heightened tensions between the two nuclear-armed neighbours, with Pakistan expressing concern over what it sees as India's attempts to unilaterally alter regional dynamics through aggressive military and diplomatic postures. The Pakistani delegation urged the international community, particularly the UK, to play a proactive role in de-escalating tensions and ensuring adherence to international norms.
Business Recorder
an hour ago
- Business Recorder
MCCI suggests steps for water security after Indian aggression
MULTAN: Extolling a number of steps undertaken by the incumbent government for welfare of the people, The Multan Chamber of Commerce and Industry (MCCI) urged it to take long term initiatives for water security as it is a matter of existential importance for each Pakistani. Speaking at a post budget news conference here on Tuesday evening, President MCCI, Bakhtawar Tanvir Sheikh, stated, "Water security is an existential threat for us all after recent Indian aggression and the government should devise durable steps for it." He highlighted several initiatives of the government to extend relief to masses including electricity traffic reduction, allocation of heavy funds for BISP, Green Pakistan Initiative, decrease in policy rate from 22 to 11 percent, lessening of inflation etc. 'The economy saw troubled times in the last three years and each strata of society had to face challenges, but now it has improved,' he said, adding that the MCCI congratulates the government for presenting its second budget today. Regarding proposed taxation reforms in the budget for FY205-26, the MCCI president thanked the government for including its proposal in it, adding that undocumented and unregistered business owners should be penalized for evading taxes. 'The government should announce more relief for tax complaints for people who have been paying it for years.' he suggested. Sheikh hailed the Special Investment Facilitation Council (SIFC) launched by the government and its working for betterment of agriculture, and added that the government has proposed steps for improvement of education in the budget without which no country can progress. On the Information Technology sector, he opined that the government should invest Rs 10 billion dollars in the future after 3.1 bln dollars of IT exports. '70 pc of the population of Pakistan is youth and this sector can open up new avenues for them if government invests more in it.' he insisted. The MCCI president heaped praise on the government for proposing new tax slabs from salaried class in the budget and termed them very helpful for them. Present on the occasion were SVP Khawaja M. Mohsin, former presidents Mian Tanvir A Sheikh, Mian Rashid Iqbal, Khawja M. Hussain, Ex SVPs Asim Saeed and others.
Business Recorder
3 hours ago
- Business Recorder
Oil up on hopes of positive US-China trade talks
NEW YORK: Oil prices edged up 1% to a seven-week high on Tuesday on hopes trade talks between the US and China - the world's two biggest economies - will result in a deal that could support global economic growth and boost oil demand. Brent crude futures rose 81 cents, or 1.2%, to $67.85 a barrel by 11:22 a.m. EDT (1522 GMT), while US West Texas Intermediate crude rose 83 cents, or 1.3%, to $66.12. Those gains pushed both crude benchmarks into technically overbought territory for the first time since early April and put Brent on track for its highest close since April 17 and WTI on track for its highest close since April 3. US Commerce Secretary Howard Lutnick said trade talks with China were going well as the two sides met for a second day in London, seeking a breakthrough on export controls that have threatened a fresh rupture between the superpowers. 'There's a sense of optimism around these trade talks; the market is waiting to see what this will produce, and that is supporting prices,' said Harry Tchilinguirian, group head of research at Onyx Capital. On the supply side, allocations to Chinese refiners showed that Saudi Arabia's state oil company Saudi Aramco will ship about 47 million barrels of oil to China in July, 1 million barrels less than June's allotted volume, Reuters reported. The Saudi allocations could be an early sign that the unwinding of OPEC+ production cuts might not result in much additional supply, Tchilinguirian said. OPEC+, which pumps about half of the world's oil and includes the Organization of the Petroleum Exporting Countries (OPEC) and allies like Russia, put forward plans for an output increase of 411,000 barrels per day (bpd) for July as it looks to unwind production cuts for a fourth straight month. A Reuters survey found that OPEC's May increase to oil output was limited, with Iraq, the second biggest OPEC producer behind Saudi Arabia, pumping below target to compensate for earlier overproduction, and Saudi Arabia and the United Arab Emirates making smaller increases than agreed. Elsewhere, Iran said it would soon make a counter-proposal for a nuclear deal in response to a US offer that Tehran deems 'unacceptable', while US President Donald Trump made clear that the two sides remained at odds over whether Tehran would be allowed to continue enriching uranium on Iranian soil. Iran is the third-largest OPEC producer and any easing of US sanctions on Tehran should allow Iran to export more oil, which should reduce crude prices.
