Key points
- Shares of Chinese defence firms surged after Pakistan announced plans to purchase 40 J-35 stealth jets, KJ-500 aircraft, and HQ-19 missile systems from China
- Deal would mark China’s first export of the fifth-generation J-35 fighter jet
- India has downplayed Pakistan’s claims about the effectiveness of Chinese-supplied weaponry
ISLAMABAD: Shares of Chinese defence companies surged on Monday following Pakistan’s announcement of plans to purchase one of China’s most advanced fighter jets as part of a major arms acquisition, Bloomberg reported.
In its 9 June article titled, “Chinese defence companies soar as Pakistan touts arms purchase”, Bloomberg noted that shares of AVIC Shenyang Aircraft Company — the manufacturer of the J-35 stealth fighter jet, central to the deal — hit their 10 per cent daily limit in Shanghai, continuing a three-day rally. The gains also lifted other defence-related stocks, including Aerospace Nanhu Electronic Information Technology Co, which saw a rise of up to 15 per cent.
On Friday, Pakistan’s government stated on social media that it plans to procure 40 J-35 fifth-generation stealth jets, KJ-500 airborne early warning and control aircraft, and HQ-19 ballistic missile defence systems.
Gaining momentum
Chinese defence stocks have been gaining momentum since last month, when Pakistan claimed that Chinese-supplied J-10C jets were involved in shooting down six Indian aircraft, including French-made Rafales, according to Bloomberg. India has downplayed Pakistan’s claims about the effectiveness of Chinese-supplied weaponry.
If finalised, the J-35 sale would represent China’s first international export of the fifth-generation stealth fighter, developed by Shenyang Aircraft Corporation and first showcased at the 2024 Zhuhai Airshow.
