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.
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 Company was among the biggest gainers, with its stock rising the most since Oct 14.
Deputy PM Ishaq Dar said on Wednesday that its air force used Chinese J-10C jets in its response to India’s attack, according to state-owned Associated Press of Pakistan.
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.
Published in Dawn, May 8th, 2025
