China's defence stocks jump up to 10% led by AVIC Shenyang as Pakistan announces arms purchase
Chinese defence stocks rallied after Pakistan announced plans to buy 40 J-35 stealth fighter jets, marking China's first export of the fifth-generation aircraft. AVIC Shenyang surged 10%, with broader sector gains following the major arms deal.
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
Shares of Chinese defense companies rallied on Monday after Pakistan said that it intends to buy one of the Asian power's most-advanced fighter jets as a part of major arms purchase. Among the top gainers was AVIC Shenyang Aircraft Company, whose stock surged over 10% following Pakistan's announcement that it plans to buy J-35 stealth fighter jet from the Chinese company.Touted as one of the country's most-advanced fighter jets, the deal is seen as a part of major arms purchase by India's western neighbour.On Friday, the government of Pakistan in a social media post said that it would acquire 40 J-35 fifth-generation fighter jets, KJ-500 airborne early warning and control aircraft, as well as HQ-19 ballistic missile defense systems.Shares of AVIC Shenyang Aircraft have remained unbeaten for the past three trading sessions, Today's rally has extended stocks gains to 13% in the past five sessions. While it is a month since the ceasefire between India and Pakistan was implemented, AVIC Shenyang Aircraft shares have jumped 18% in this period.An armed escalation broke out between India and Pakistan between May 7 and May 10 as India hit several targets in Pak Occupied Kashmir (PoK) to avenge the killings in Pahalgam where 26 innocent tourists were killed.AVIC Shenyang Aircraft has been in the thick of action owing to its J-35 stealth fighter jetMeanwhile, other Chinese defence stocks also saw a positive rub-off impact as Aerospace Nanhu Electronic Information Technology Co., whose shares jumped as much as 15% on the intraday basis. This counter has rallied 10% in the past five trading sessions.Aerospace CH UAV Co shares were up by over 1% while Inner Mongolia First Machinery Grp Co was 4% higher.The J-35 sale to Pakistan would mark China's first export of the fifth-generation jet, which has advanced stealth capabilities for penetrating the airspace of an adversary, a Bloomberg report said. The fighter was developed by Shenyang Aircraft Corporation and publicly unveiled at the 2024 Zhuhai Airshow, it added.The KJ-500 aircraft would improve Pakistan's radar coverage and its smaller size allows for nimbler use in regional clashes. The HQ-19 surface-to-air missile systems would enhance the country's ability to intercept ballistic missiles.The deal comes amid persisting tensions between Pakistan and India. The nuclear-armed neighbors clashed several weeks ago, with both sides trading air, drone and missile strikes, as well as artillery and small arms fire along their shared border in early May.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
18 minutes ago
- Time of India
Starbucks lowers prices in China as rivals brew up discount war
Starbucks China will lower the prices of some of its iced drinks by an average of 5 yuan (USD 0.70) across the country, the company announced on Monday, as competition intensifies and consumers become more cautious about spending. In a post on its Weixin social media account, the U.S. coffee chain said it would offer more "accessible" prices on dozens of its drinks, including non-coffee drinks and the Frappuccino, from Tuesday. While China is Starbucks' second-largest market after the U.S., the coffee market is highly competitive and consumers have become more cautious about spending because of the slowing economy and concerns about job security. The new approach means some of Starbucks' drinks will be priced as low as 23 yuan, the post said. Domestic rivals such as Luckin Coffee and Cotti have priced their drinks as low as 9.9 or even 8.8 yuan, while deep-pocketed internet companies and Alibaba Group have entered the food delivery market, adding to the competition. With offers and vouchers, Chinese coffee consumers can buy themselves a drink for as little as 2.9 yuan. A person close to Starbucks, said the company was not reducing prices in response to intense price competition, but looking to attract more customers in the afternoon. The individual requested anonymity as they were not in a role that allowed them to comment to the media. "Starbucks likely has a longer-term strategy, which is to focus on the demand for non-coffee items in the afternoon among consumers," the source said. Starbucks had said previously that it would not engage in a price war. However, it has also introduced smaller-sized drinks and issued coupons which have lowered prices for customers The U.S. giant has also been looking to revive its business in China via selling stakes in the business.
India Gazette
29 minutes ago
- India Gazette
China optimistic on diplomatic relations with India Ambassador
Beijings envoy has expressed confidence in revitalizing bilateral ties with New Delhi Chinese Ambassador to India, Xu Feihong has expressed optimism for strong diplomatic relations between the two nations. Speaking to reporters on Sunday in the eastern Indian city of Kolkata, Xu noted that the millennia of shared history between the two nations brings them beyond simple neighbourly relations. "China and India have been civilisations for so long. We have such close cultural and historical interactions. So, why shouldn't we have good relations in the coming years," Xu said. Though tensions and mistrust remain, he emphasized that genuine progress necessitates more than high-level diplomacy. "It's not only up to the governments," he was quoted by the Times of India as saying. Ambassador Xu's statements come against the backdrop of Beijing's recent overtures to New Delhi, to open up economic and people-to-people relations. The Asian giants have made efforts to reset ties Oover the last year, after the 2020 Galwan Valley clash along their disputed Himalayan border, in which soldiers from both sides were killed. After extended military and diplomatic discussions, New Delhi and Beijing announced in October last year that they had reached an agreement on disengagement from areas of tension and would work towards normalizing their relations. Theannouncementwas made on the eve of the BRICS summit in Kazan, Russia, where Chinese President Xi Jingping and Indian Prime Minister Narendra Modi held a comprehensive bilateral meeting, marking their first such engagement in almost five years. In Kolkata on Sunday, Xu emphasized the importance of various groups, including think-tanks, universities, and students, as well as ordinary citizens from both sides, in fostering a positive relationship. He also highlighted the crucial understanding between Xi and Modi, which focuses on strengthening ties and keeping lines of communication open. In April, Xi pointed out that China and India are both ancient civilizations, major developing countries, and key members of the Global South, with both currently at a crucial stage in their modernization efforts. As a step towards the normalization of relations, Indian pilgrims will be allowed to visit a pilgrimage sites of religious significance to Hindus, Jains and Buddhists at Mount Kailash and Lake Mansarovar in Tibet, after a gap of five years. Beijing has also called on New Delhi to restart direct flights between mainland India and China, as well as to ease visa procedures for Chinese nationals. (
India Gazette
29 minutes ago
- India Gazette
China optimistic on diplomatic relations with India
Beijing's envoy has expressed confidence in revitalizing bilateral ties with New Delhi Chinese Ambassador to India, Xu Feihong has expressed optimism for strong diplomatic relations between the two nations. Speaking to reporters on Sunday in the eastern Indian city of Kolkata, Xu noted that the millennia of shared history between the two nations brings them beyond simple neighbourly relations. "China and India have been civilisations for so long. We have such close cultural and historical interactions. So, why shouldn't we have good relations in the coming years," Xu said. Though tensions and mistrust remain, he emphasized that genuine progress necessitates more than high-level diplomacy. "It's not only up to the governments," he was quoted by the Times of India as saying. Ambassador Xu's statements come against the backdrop of Beijing's recent overtures to New Delhi, to open up economic and people-to-people relations. The Asian giants have made efforts to reset ties Oover the last year, after the 2020 Galwan Valley clash along their disputed Himalayan border, in which soldiers from both sides were killed. After extended military and diplomatic discussions, New Delhi and Beijing announced in October last year that they had reached an agreement on disengagement from areas of tension and would work towards normalizing their relations. The announcement was made on the eve of the BRICS summit in Kazan, Russia, where Chinese President Xi Jingping and Indian Prime Minister Narendra Modi held a comprehensive bilateral meeting, marking their first such engagement in almost five years. In Kolkata on Sunday, Xu emphasized the importance of various groups, including think-tanks, universities, and students, as well as ordinary citizens from both sides, in fostering a positive relationship. He also highlighted the crucial understanding between Xi and Modi, which focuses on strengthening ties and keeping lines of communication open. In April, Xi pointed out that China and India are both ancient civilizations, major developing countries, and key members of the Global South, with both currently at a crucial stage in their modernization efforts. As a step towards the normalization of relations, Indian pilgrims will be allowed to visit a pilgrimage sites of religious significance to Hindus, Jains and Buddhists at Mount Kailash and Lake Mansarovar in Tibet, after a gap of five years. Beijing has also called on New Delhi to restart direct flights between mainland India and China, as well as to ease visa procedures for Chinese nationals.
