Chinese defence stocks soar as Pakistan eyes major weapons deal: report
Pakistan plans to buy J-35 jets, KJ-500 aircraft, HQ-19 missiles as part of weapons deal
June 10, 2025
- Shares for maker of China's J-35 jet jump by their daily 10% limit.
- Positive sentiment also results in substantial gains for other key players.
- China's defence shares rising since Pakistan-India military confrontation.
Chinese defence companies' shares rallied significantly on Monday following Pakistan's announcement of its intent to procure advanced fighter jets and other sophisticated weaponry from the Asian power, Bloomberg reported, fuelling investor enthusiasm in the sector.
AVIC Shenyang Aircraft Company, the manufacturer of China's cutting-edge J-35 stealth fighter jet — identified as a centerpiece of the prospective arms package — saw its shares surge by their daily 10% limit in Shanghai.
This marked the third consecutive session of gains for the company, underscoring strong market reaction to the potential deal.
The positive sentiment extended across the broader Chinese defence industry, with other key players also witnessing substantial gains.
Aerospace Nanhu Electronic Information Technology Co, for instance, saw its shares jump by as much as 15%, leading a broader rally among defence-related stocks.
The Pakistani government publicly confirmed its intentions via a social media post on Friday, detailing plans to acquire 40 J-35 fifth-generation fighter jets, alongside KJ-500 airborne early warning and control (AEW and C) aircraft, and HQ-19 ballistic missile defence systems.
China's Ministry of Defence didn't respond to a request for comment.
Shares of Chinese arms makers have been on the rise since Pakistan last month claimed that Chinese J-10Cs helped shooting down six Indian fighters, including French-made Rafale aircraft.
India has downplayed Pakistan's claims about the effectiveness of weaponry deployed from China and other countries, saying that the Indian military was able to conduct precision airstrikes deep in Pakistani territory, Bloomberg reported.
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.
The fighter was developed by Shenyang Aircraft Corporation and publicly unveiled at the 2024 Zhuhai Airshow.
