The shares of Avic Chengdu Aircraft, known for manufacturing fighter jets like the JF-17 Thunder and the J-10C Vigorous Dragon, saw a 41.08% surge over the past five days since the commencement of the India-Pakistan conflict.
What Happened: This rise was amid growing tensions between India and Pakistan following New Delhi’s recent military actions to avenge the alleged killings of tourists by Pakistani terrorists in Pahalgam, Kashmir.
On Friday, U.S. officials confirmed that a Chinese-made J-10 fighter jet fired air-to-air missiles at Indian aircraft, reportedly resulting in the downing of a French-built Rafale jet. The Pakistani Defense Minister, Khawaja Muhammad Asif, also said that the Chinese-made J-10 was used to shoot down three of India’s newly acquired Rafale jets.
Notably, the Indian military has not issued a clear response to the claim. “We are in a combat scenario and losses are a part of it. All our pilots are back home,” stated Air Marshal A.K. Bharti on Sunday.
However, after a steep rise, the Avic Chengdu stock tumbled over 7% on Tuesday, possibly in response to a statement from Indian Prime Minister Narendra Modi. Modi on Monday announced the successful completion of Operation Sindoor. This statement triggered a massive selloff in Chinese defense stocks.
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Why It Matters: If confirmed, this would be the first combat success of the J-10 family since the original J-10 was unveiled 27 years ago. Pakistan, a long-standing ally of China, is the only foreign country operating the advanced J-10C, with a fleet of 20. This incident also marked the first reported loss of a Rafale fighter jet in combat, according to the South China Morning Post.
While Chinese citizens praised the J-10C fighter jet’s role in the India-Pakistan conflict as a milestone for China’s defense industry, Beijing maintained a cautious stance. Analysts attributed this to geopolitical sensitivities and military prudence. The only official response from Beijing urged both countries to show restraint and avoid escalating tensions, reported the publication.
Meanwhile, this incident had sent shockwaves across defense circles and rattled investors, causing shares of French manufacturer Dassault Aviation DUAVF to plunge.
President Donald Trump announced on Saturday a U.S.-brokered ceasefire between India and Pakistan.
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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