Shares of Chinese arms makers surge: Pakistan plans to buy J-35 jets, KJ-500 aircraft, HQ-19 missiles, says report

Shares of Chinese defence companies rallied on Monday, after Pakistan said it intends to buy one of the Asian power’s most-advanced fighter jets as a part of major arms purchase, according to Bloomberg.

In a report titled ‘Chinese defence companies soar as Pakistan touts arms purchase’ and published on June 9, Bloomberg reported that shares of AVIC Shenyang Aircraft Company — the maker of China’s J-35 stealth fighter jet, which is the centerpiece of the package — soared by their 10 per cent daily limit in Shanghai, extending gains for the third consecutive session.

The stock led a rally across other defence names such as Aerospace Nanhu Electronic Information Technology Co, whose shares jumped as much as 15 per cent.

The government of Pakistan said in a social media post on Friday 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 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 to shoot 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.