Shares of Rafale maker plunge, China’s defence stocks advance as Pakistan downs IAF jets

KARACHI: Shares in Dassault Aviation -- the French manufacturer of the Rafale fighter jet -- plunged 6.0 per cent on Wednesday.

The drop followed Pakistan’s air force shooting down five Indian aircraft, including three Rafale jets, amid escalating military tensions along the Line of Control (LoC).Meanwhile, shares of Chinese defence-manufacturing companies rallied on Wednesday, as the escalation in border tensions between India and Pakistan boosted the outlook for mainland exporters, Bloomberg reported.

Pakistan, which has imported a bulk of the defence equipment including J-10C fighter jets, claimed to have shot down five Indian planes, including a French Rafale jet. This led to speculation that Chinese defence platforms may have been deployed in the conflict, given Pakistan’s recent heavy reliance on such arms imports, the report said.

An index of Chinese defence companies in mainland China jumped 1.6 per cent to a two-week high. The J-10C fighter jet maker Avic Chengdu Aircraft Co was among the biggest gainers, with its stock rising the most since October 14.

Most modern domestically developed Chinese platforms have not yet been battle-tested, said Eric Zhu, a defence analyst at Bloomberg Intelligence. “So having the combat record is a plus for their export potential.”

Pakistan has been buying the bulk of its arms from China. Imports from the country made up 82 per cent of Pakistan’s stock from 2019-2023, compared to 51 per cent from 2009-2012, the Bloomberg report added.